Deutsche Consumer REIT is in trouble. Obotritia, a company owned by founder and supervisory board member Rolf Elgeti, is currently unable to repay a loan (DER AKTIONÄR reported). The stock then collapsed massively and fell to a record low. As the DKR reported on Friday, Elegenti took action.
According to the Director Dealing’s, Hevella Capital, also a company with a connection to Elgeti, bought DKR shares with a volume of around 740,000 euros on Wednesday. A day earlier, his EFa Vermögensverwaltungs KG ordered papers worth around 120,000 euros.
German consumer REIT
(WKN: A14KRD)
With the insider purchases, Elgeti is of course causing speculation. Does he know that Obotritia can repay the 62 million euro loan? Or is it an act of desperation in an attempt to get more investors on board.
Of course, if Obotritia goes bankrupt, the DKR is not necessarily at risk of bankruptcy itself. But such a horror scenario is unlikely to go down well with business partners. In addition, the DKR will have to refinance bonds next year, which would be made significantly more difficult.
Insider purchases are fundamentally a sign of trust. The latest developments raise doubts about the DKR. For now, investors should avoid DKR shares.
2023-10-07 06:52:30
#German #consumption #act #desperation
