Some of the former shareholders in Feri AG are demanding an increase in the purchase price payable by MLP AG amounting to EUR 51.5 million. As these shareholders have not withdrawn their demands despite an imposed deadline, MLP will – as communicated to the claimants – take legal action and file for a negative declaratory judgement by the Regional Court of Frankfurt. The aim of the legal action is to obtain judicial confirmation that the claims asserted by this group of former Feri shareholders are unjustified.
The issue relates to the purchase of the remaining 43.4 percent of shares in Feri in April 2011. As communicated at that time, MLP acquired the shares for a provisional purchase price of EUR 50.6 million, and at the same time, entered – as contractually specified – into discussions with the former shareholders concerning an additional, variable component (“earn out”). As expected, MLP reached agreement with a large portion of the former shareholders, including the current Feri management.
Within the framework of these discussions, a separate element of the former shareholders suggested that MLP had breached its contractual obligations. In order to decisively counteract these asserted claims from the outset, MLP will file for a declaratory judgement. MLP considers the demands to be devoid of any legal basis.