DGAP-News: GRENKE AG / Key word(s): Personnel
GRENKE AG reinforces Board of Directors and integrates franchise system
Baden-Baden, October 29, 2020: GRENKE AG, global financing partner for small and medium-sized enterprises, is setting its future course with a roadmap for the integration of the franchise companies and the reinforcement of the Board of Directors, as well as a reallocation of responsibilities.
To further the development of the compliance area, as well as the entire internal control system, GRENKE is installing a Chief Risk Officer (CRO) at the level of the Board of Directors and transferring responsibility for Internal Audit to the Chair of the Board of Directors Antje Leminsky. In addition, Sebastian Hirsch, member of the Board of Directors, has been appointed Chief Financial Officer (CFO), effective immediately.
Antje Leminsky, Chair of the Board of Directors of GRENKE AG, comments: "As a medium-sized group, we stand for entrepreneurial spirit, reliability and long-term growth. Through continuous development, we want to align this successful model even more closely to what the capital market expects from us: transparency, professional governance and compliance".
Integration of franchise companies
Member of the Board of Directors Sebastian Hirsch explains: "For almost two decades we have been very successful in our expansion via franchise companies. We want to continue this success, but now we intend to do so with GRENKE start-ups and not external financial investors. Given the Consolidated Group's size, strength and expertise, we believe that the opportunities in taking this step outweigh the risks. What remains important for the future is supporting the entrepreneurial spirit of the start-up teams and providing them with an incentive by giving them a commensurate share in the success. In order to present our new approach in a transparent manner, we intend to disclose the results of these start-ups and the associated costs separately in our balance sheet in addition to the customary presentation".
GRENKE plans to integrate the existing 16 franchise companies, that have not yet been acquired by the Consolidated Group. The GRENKE Board of Directors will initiate talks immediately with these companies' prior owners. In September, company founder and the indirect owner of CTP, Wolfgang Grenke, had offered to sell his interests to GRENKE AG. The same is true for Garuna AG, which also holds interests.
Any transactions in this context are to be based on independent value assessments. The Consolidated Group plans to complete the acquisition of interests from all financial investors in stages over the next 12 to 18 months.
Irrespective of the future obligation under IFRS to consolidate the franchise companies in the consolidated financial statements, GRENKE AG intends to carry out a pro forma consolidation as early as the 2020 annual financial statements and show the anticipated effects on the balance sheet.
Simultaneously, another important department is becoming a matter for top management. With immediate effect, the Chair of the Board of Directors Antje Leminsky will assume responsibility for Internal Audit. She will also oversee the Consolidated Group Strategy, IT, Risk Control and Credit Center areas.
Member of the Board of Directors Sebastian Hirsch, who is already responsible for the areas of Controlling, M&A, Treasury, Legal, Tax and Investor Relations, has been appointed Chief Financial Officer (CFO) with immediate effect.
Further adjustments in departmental responsibilities will be implemented following the expansion of the Board of Directors.
Prof. Dr. Ernst-Moritz Lipp comments: "The GRENKE Group has been a success story for the past 40 years - 20 of those years as a listed family business. The size of the Company today brings up new challenges, which we are actively addressing. With the steps announced today, we are strengthening our Board of Directors as well as our corporate governance".
Intact business model with long-term growth opportunities
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Founded in 1978 in Baden-Baden, the Company operates in 33 countries and employs more than 1,700 staff worldwide. GRENKE shares are listed in the MDAX on the Frankfurt Stock Exchange (ISIN DE000A161N30).
Further information about GRENKE and its products is available at www.grenke.com.
29.10.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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