René Benko withdraws from the Signa Group and makes demands

René Benko withdraws from the Signa Group and makes demands

Several large construction projects have been stopped and lenders are rebelling. According to a business partner, real estate entrepreneur René Benko has now agreed to withdraw from his Signa group. At the same time he makes demands.

At the ailing trading and real estate group Signa, there are increasing signs that the Austrian billionaire René Benko is about to be disempowered. The entrepreneur Hans-Peter Haselsteiner, who holds 15 percent of Signa Holding, told ORF that Benko basically agreed to withdraw operationally. Instead, the restructuring expert Arndt Geiwitz should take the helm.

Several of the group's construction projects, including the Elbtower in Hamburg and the Carsch House in Düsseldorf, have been stopped due to financing problems. The entire real estate industry is currently suffering from the effects of increased interest rates and high inflation.

In a letter, Signa's most important shareholders demand that Benko be removed from power in order to get the company back on track. Haselsteiner explained that Benko was asked to appoint the restructuring officer Geiwitz as a kind of general representative and to transfer to him all voting rights that Benko or his foundations hold in Signa Holding. Benko owns around 77.5 percent of the shares directly and indirectly through private foundations.

Benko's withdrawal is not yet final. He would like to know whether the shareholders are prepared to contribute to the restructuring of the group.

The loss of trust between Benko and his financiers is enormous. Several Signa shareholders have signaled that they want to withdraw. There are currently no signs that Benko's previous partners are prepared to provide further capital to restructure the real estate group.

Signa is described as “renovable”. Geiwitz is considered the best man to handle the restructuring. Benko officially no longer has any operational positions in the Signa Group, but is considered the one who makes all important decisions via the Signa Holding advisory board. Its complicated network of companies includes several hundred individual companies.

According to a report from www.tagesschau.de