Infotech

The Solutions 30 share remains incotable on the Paris Stock Exchange



Solutions 30 had not been listed for ten trading days. This Monday morning, while all its shareholders had their eyes riveted on their screens, the company’s title remains, unsurprisingly, incotable. It is reserved for the decline. According to the order book, it could price around 1.50 euros, against 10.38 euros before the suspension.

But analysts are convinced that the stock will not trade for the session, except for a few seconds. True, around 17% of the capital is held by short sellers who need to buy back securities. But opposite, there are all the managers and small shareholders who want to sell and who are, in the end, much more numerous.

Three days full of announcements

The last three days have been full of announcements. First, on Friday evening, Solutions 30 told the market that its auditor, EY Luxembourg, was not in a position to formulate an opinion on its 2020 accounts. He had said he did not understand why.

Then, Sunday afternoon, Solutions 30 finally gave the reasons put forward by its auditor to justify its abstention. As a reminder, since December, the Luxembourg group listed on Euronext Paris, and which appears in the SBF 120, has been the subject of heavy criticism emanating first from an anonymous report, then from the American short seller Muddy Waters. Both accuse the company of Mafia links and accounting errors.

The reserves of the auditor

In a report posted online Sunday by the company that installs electricity meters and fiber to individuals, EY Luxembourg said: “We have not been able to collect sufficient and appropriate audit evidence justifying the nature, substance, value and compliance with the laws and regulations of certain transactions carried out by the group and to determine whether these transactions were concluded with related parties , including members of the management “.

He explains that the ” The group did not respond to our requests for additional due diligence in connection with the investigative work carried out by the supervisory board. We have not received from those responsible for the group all the written statements that we have requested. “.

Anomalies

EY Luxembourg specifies that “ As a result of these circumstances, we have concluded that the potential impacts on the consolidated financial statements of undetected misstatements could be both material and diffuse. Consequently, we have not been able to determine whether significant adjustments could have been necessary, if any, on the group’s consolidated financial statements at December 31, 2020.

For its part, Solutions 30 said to itself ” strongly disagrees with the foundations expressed by EY “. And this, because ” its teams responded diligently to the auditor’s requests for documents and information and communicated all of the information available to the group “.

Earlier this Monday, before the opening of the Paris Bourse, Muddy Waters, who has had short positions since 2019, recalled that “ exams [réalisés par Didier Kling et Deloitte par la suite, NDLR] were not audits, nor did they fully dismiss the public accusations “,” contrary to the misrepresentations of society

Lazy, stupid, unscrupulous

The short seller, whose analyzes have been hotly contested since December, has settled accounts with some investment professionals, including some analysts, “ clearly too lazy, too stupid, or too ethically unscrupulous to notice flaws in group communication “. Fund managers, who have strengthened their positions in the title since December, have not been spared either.

“In Solutions 30, we find a number of analogies to Wirecard, apart from the presence of shady characters. Both arrived at this stage because of very European problems which are: a blind willfulness of the investors in the face of glaring problems, a corporate culture, a culture of extreme credulity of the companies and a disparate legal and regulatory framework which makes Europe fertile ground for corporate misdeeds ”, says Carson Block, the founder of Muddy Waters.

And to conclude: “ Europe is fertile ground for corporate misconduct. To be clear, the markets in the United States are riddled with venality and corruption, with around 400 Chinese companies above the law and exerting their corrosive influence in the US markets with every stock tick. The difference is that in America we recognize these problems. We look forward to suggesting improvements to various laws and regulations in the future.

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