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DISSEMINATION IN THE UNITED STATES/
HALIFAX, Sept. 1, 2011 /CNW Telbec/ - (TSX: HII.A & HII.B and NYSE
Euronext Amsterdam: HII) - Homburg Invest Inc. ("HII" or the "Company")
announced today two resignations from its Board of Directors and the
appointment of a new chairman of the Board.
Michael H. Arnold, C.A. has resigned as a director and as Chairman of
the Board. He will continue to provide special advisory services to
the Board. Dr. Trevor A. Carmichael has also resigned as a director.
Neither Mr. Arnold nor Dr. Carmichael will stand for re-election to the
Board at the Annual Meeting of Shareholders.
Mr. Hartmut Fromm, a director of HII, has been appointed by the Board to
the position of Chairman. Mr. Fromm is Co-Founder and Senior Partner
of Buse Heberer Fromm in Berlin, Germany. He is also Chairman of the
Board of IMW Immobilien SE.
As a result of the foregoing, the Board of Directors currently consists
of four directors, of which three are independent.
Update on Recent Events
On August 26, 2011, Homburg Canada Inc. ("HCI"), a company controlled by
Richard Homburg, issued a news release stating that it would not follow
through on its announced intention to make an offer for all outstanding
shares of HII not already owned or controlled, directly or indirectly,
HII wishes to make it clear that it never received a formal binding
offer from HCI or Richard Homburg to purchase the shares not already
owned by them in the Company. As disclosed on July 25, 2011, the Board
of Directors of HII has only rejected a non-binding proposal made by
Richard Homburg to privatize HII (the "Proposal") because the Proposal
was not in the best interest of HII and its stakeholders.
To the knowledge of the Board of Directors of HII, the financing
required for the implementation of the Proposal was never committed.
Furthermore, the Proposal involved the use of HII's most liquid asset,
namely the units of Homburg Canada Real Estate Investment Trust that it
holds, as a means to finance the privatization, and if implemented
would have seriously impaired HII's financial flexibility.
Relationship with Netherlands Authority for Financial Markets (AFM)
The Company strongly believes that it has acted in good faith to fulfill
the requirements of the Instructions issued by the AFM previously
disclosed on May 26, 2011, and continues to work diligently to resolve
the impasse with the AFM and to avoid the loss of its licence as a
financial institution in The Netherlands.
The AFM has granted a two-week extension to HII to allow the Company to
submit reasons to the AFM as to why the Company's licence as a
financial institution in The Netherlands should not be revoked. HII
reminds investors that the letter from the AFM conveys an intention to
make a decision and is not definitive.
HII to Vigorously Contest Claim for Damages by HCI
On August 30, 2011, HII announced that it had received a claim for
damages totalling approximately $27 million from HCI as compensation
for the termination by HII of the master property and asset management
agreement between the Company and HCI.
HII maintains that it terminated the agreement as a result of breaches
by HCI of its obligations under the agreement, and as such holds the
position that no compensation is payable to HCI. The Company rejects
the claim for compensation and will vigorously contest it, should the
matter come before the Courts.
Communications with Stakeholders in the Netherlands
Due to the increasing number of enquiries from shareholders and debt
holders in the Netherlands, HII is in the process of setting up a
Netherland's based communications channel. Additional information will
be announced shortly.
About Homburg Invest
Homburg Invest Inc. owns and develops a diversified portfolio of quality
commercial real estate including office, retail, industrial and
development properties throughout Europe and the United States, as well
as an interest in Homburg Canada Real Estate Investment Trust. The head
office of the Company is located in Halifax, Nova Scotia.
SOURCE HOMBURG INVEST INC.
For further information:
NATIONAL Public Relations