HALIFAX, May 26, 2011 /CNW Telbec/ - (TSX: HII.A HII.B) (AEX: HII) - Homburg Invest Inc. ("HII" or the "Company") announced today that the
Company has received an instruction (the "Instruction") from the
Authority for Financial Markets ("AFM") in the Netherlands requiring it
to appoint two directors or officers who are residents of the
The AFM also instructed HII to remove HII's controlling shareholder
Richard Homburg as a decision-maker and person of influence in the
Company. The AFM did not specify any process or means by which the
Instruction to remove Mr. Homburg as a person of influence should be
The Board of Directors is taking steps to comply with those elements of
the Instruction that it can legally undertake, such as submitting
candidates to the AFM for Netherlands-based directors. HII cannot
comply with any aspect of the Instruction that is not enforceable
under, or would result in a breach of, Canadian or Dutch law. The
Board of Directors of HII cannot itself legally reduce the control Mr.
Homburg exercises over HII through his shareholdings nor can it compel
Mr. Homburg to reduce his control. The Board has no authority under
HII's governing law, the Alberta Business Corporations Act, to require Mr. Homburg or any other shareholder to reduce that
holder's ownership in HII, or to not vote that holder's shares.
Further, HII cannot restrict or in any manner vary the voting rights
that attach to those shares. As a consequence, HII is left in the
difficult position of being unable to carry out these aspects of the
In its Instruction to the Company, the AFM relies on information it
apparently received from Dutch authorities and from Mr. Homburg about
tax assessments, which have not been resolved and which are being
contested by Mr. Homburg, and other personal matters between Mr.
Homburg and the Dutch tax authorities.
"HII is vigorously contesting the AFM Instruction, which is based on a
dispute between the Dutch tax authorities and a private individual (Mr.
Homburg)," said Jan Schöningh, President and Chief Executive Officer of
HII. "HII will continue to explore all possible recourses available to
it in order to protect HII and its stakeholders. I want to reassure
shareholders that there is no material financial impact of this
Instruction on the Company and that we continue to focus on building
value for shareholders."
About Homburg Invest
Homburg Invest, with its head office in Halifax, Nova Scotia, owns and
develops a diversified portfolio of quality real estate including
office, retail, industrial and residential apartment and townhouse
properties throughout Canada, the United States and Europe.
This news release may contain statements which by their nature are
forward looking and express the Company's beliefs, expectations or
intentions regarding future performance, future events or trends.
Forward looking statements are made by the Company in good faith, given
management's expectations or intentions however, they are subject to
market conditions, acquisitions, occupancy rates, capital requirements,
sources of funds, expense levels, operating performance and other
matters. Therefore, forward looking statements contain assumptions
which are subject to various factors including: unknown risks and
uncertainties: general economic conditions; local market factors;
performance of other third parties; environmental concerns; and
interest rates, any of which may cause actual results to differ from
the Company's good faith beliefs, expectations or intentions which have
been expressed in or may be implied from this news release. Therefore,
forward looking statements are not guarantees of future performance and
are subject to known and unknown risks. Information and statements in
this document, other than historical information, should be considered
forward-looking and reflect management's current views of future events
and financial performance that involve a number of risks and
uncertainties. Factors that could cause actual results to differ
materially include, but are not limited to, the following: general
economic conditions and developments within the real estate industry,
competition and the management of growth.
SOURCE HOMBURG INVEST INC.
For further information:
Paul de la Plante,
NATIONAL Public Relations