Regulatory News:
Eurofins (Paris:ERF):
As has been done in previous press releases published by
Eurofins on 25 June 2024, 03 July 2024 and 05 July 2024 in response
to baseless reports by Muddy Waters, LLC (MW), Eurofins would like
to provide clear and direct communication on subjects of greatest
importance to its key stakeholders, including shareholders,
bondholders, employees and customers, regarding MW earlier reports
and MW’s recent letter to Eurofins’ CEO, Dr Gilles Martin. This
approach is fully consistent with the Company’s communication
policies that adhere to strict rules to ensure that all investors
simultaneously receive, through appropriate and accredited
channels, reliable information that has been rigorously validated.
This stands in contrast to the inaccurate, irrelevant, biased
and/or misleading allegations made by MW in its reports, which
Eurofins has thoroughly refuted in its previous press releases, and
potentially also to various other baseless allegations made by MW
and/or its clique of short sellers through alternative
channels.
Concerning related party transactions involving Analytical
Bioventures SCA (ABSCA), which is controlled by Dr Gilles Martin,
Eurofins continues to access archives and information regarding
older allegations and facts cited with errors by MW and plans to
present investors, in due course, with further information on its
real estate programme that provides confirmation of arm’s length
terms in transactions involving related parties, and can validate
the following points complementing Eurofins’ previous
communication:
- As made clear in Eurofins’ previous press releases, during the
last 10 years, for each site expansion financed by ABSCA on an
ABSCA-owned site, the lease terms for these additional properties
were assessed to be at arm’s length based on appraisals of
comparable properties performed by independent external experts.
Indeed, assessments to ensure that related party transactions are
at arm’s length has been a standard Eurofins practice since ABSCA
started to finance buildings to be used by Eurofins companies in
2005 so Eurofins could use its resources to expand organically and
through acquisitions at a time when its access to capital and
credit was much more limited.
- Completely contrary to MW’s false allegation that “Eurofins
funded expansions while Dr. Martin increased the rent charged for
the larger facilities” (p. 7 in MW report published 25 June 2024),
whenever Eurofins financed site improvements on laboratory campuses
rented from ABSCA subsidiaries, there was of course no increase in
lease payments made by Eurofins companies to ABSCA subsidiaries in
connection to these improvements.
Furthermore, as has already been discussed based on feedback
from its investors as part of ongoing dialogue, it is planned to
provide Eurofins the opportunity to acquire those ABSCA-owned sites
that Eurofins companies wish to use long term, subject to a vote by
non-related shareholders (i.e., without the participation of ABSCA
and its representative directors). The timeline for this process is
dependent on numerous conditions, including the significant
preparation work required (i.e., appraisals by independent external
experts) and Eurofins’ financial development, but it is Eurofins’
intention to conduct this vote at the earliest appropriate
occasion. In order to proceed swiftly on this matter, while
protecting the sustainability of its balance sheet within its
stated financial leverage objectives with adequate headroom,
Eurofins will prioritise, if required, the acquisition of
ABSCA-owned sites, if so decided by a majority of its non-related
shareholders, over the acquisition of new sites from third
parties.
Concerning MW’s allegations regarding Eurofins’ cash accounting,
as already communicated in its press release published on 05 July
2024, Eurofins has mandated Ernst & Young Paris, one of the
leading auditors for CAC40 companies, to perform an additional
independent audit of Eurofins’ cash pooling arrangements and cash
situation in its consolidated financial statements as at 31
December 2023, and will report on the findings when available.
Concerning corporate governance, Eurofins is contemplating
increasing the proportion of independent, non-executive directors
on its Board of Directors by potentially adding one or more
directors with appropriate experience and seniority. Among other
factors, Eurofins will consider the qualifications, recognition and
work experience of potential candidates, with any appointment
subject to a shareholder vote at an Annual General Meeting.
Going forward, Eurofins will continue to listen to serious
requests from legitimate investors and other stakeholders but does
not intend to further divert its resources to respond to
irrelevant, biased and/or unfounded allegations or unreasonable
requests by MW and similar actors.
Comments from the CEO, Dr Gilles Martin:
“In its latest letter dated 09 July 2024 and addressed directly
to me, MW proposed that transparency is the remedy to win investor
trust. As MW should know, transparency for a public company such as
Eurofins requires, among other factors, adherence to clear and
strict rules regarding the reliability of information published as
well as the method of dissemination, to avoid potential risks
arising from, among other causes, insider trading or market
manipulation. Based on what we have seen so far, it seems hard to
conclude that MW adheres to a similarly high level of transparency
and rigour. Rather than continue making false or misleading
allegations against Eurofins or inappropriate and absurd requests
for information, perhaps MW should instead consider if it is being
transparent with its own practices and fulfilling its regulatory
requirements in all relevant jurisdictions, assuming that its
intentions extend beyond simply profiteering at the expense of
investors, especially passive funds and individual investors who
may be less familiar with the practices of short sellers. Since MW
has never initiated a dialogue with Eurofins to discuss their
assessments prior to publishing their communications, which could
have prevented the spread of their incorrect and misleading
information, we can only surmise that MW, and parties potentially
acting together with MW, does not have any intentions other than to
serve their own personal financial interests by deceiving the
investing public.
In contrast, Eurofins will continue to fulfil its obligation to
provide clear and transparent communication through the appropriate
channels and formats and after adequate verification and carefully
considering the interests and suggestions of its investors and
stakeholders. Therefore, going forward, we do not intend to expend
further company resources to respond to MW’s baseless allegations
or arbitrary requests. Instead, our energy and attention are
focussed not only on our strategic, operational and financial
performance, but also on the aforementioned subjects of greatest
importance to our key stakeholders. We look forward to discussing
these topics with them in upcoming engagements, including at the
time of our Half Year 2024 results publication on 24 July
2024.”
About Eurofins – the global leader in bio-analysis
Eurofins is Testing for Life. The Eurofins Scientific SE network
of independent companies believes that it is a global leader in
food, environment, pharmaceutical and cosmetic product testing and
in discovery pharmacology, forensics, advanced material sciences
and agroscience contract research services. It is also one of the
market leaders in certain testing and laboratory services for
genomics, and in the support of clinical studies, as well as in
biopharma contract development and manufacturing. It also has a
rapidly developing presence in highly specialised and molecular
clinical diagnostic testing and in-vitro diagnostic products.
With ca. 62,000 staff across a decentralised and entrepreneurial
network of more than 900 laboratories in over 1,000 companies in 62
countries, Eurofins offers a portfolio of over 200,000 analytical
methods to evaluate the safety, identity, composition,
authenticity, origin, traceability and purity of a wide range of
products, as well as providing innovative clinical diagnostic
testing services and in-vitro diagnostic products.
Eurofins companies’ broad range of services are important for
the health and safety of people and our planet. The ongoing
investment to become fully digital and maintain the best network of
state-of-the-art laboratories and equipment supports our objective
to provide our customers with high-quality services, innovative
solutions and accurate results in the best possible turnaround time
(TAT). Eurofins companies are well positioned to support clients’
increasingly stringent quality and safety standards and the
increasing demands of regulatory authorities as well as the
evolving requirements of healthcare practitioners around the
world.
The Eurofins network has grown very strongly since its inception
and its strategy is to continue expanding its technology portfolio
and its geographic reach. Through R&D and acquisitions, its
companies draw on the latest developments in the field of
biotechnology and analytical chemistry to offer their clients
unique analytical solutions.
Shares in Eurofins Scientific SE are listed on the Euronext
Paris Stock Exchange (ISIN FR0014000MR3, Reuters EUFI.PA, Bloomberg
ERF FP).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240710445296/en/
Notes to Editors: For more information, please
visit www.eurofins.com or contact: Investor Relations
Eurofins Scientific SE Phone: +32 2 766 1620 E-mail:
ir@sc.eurofinseu.com
Enerplus (NYSE:ERF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Enerplus (NYSE:ERF)
Historical Stock Chart
From Jul 2023 to Jul 2024