RAG-Stiftung writes off investment in insolvent Signa Group, but still has positive annual financial statements for 2023

RAG-Stiftung writes off investment in insolvent Signa Group, but still has positive annual financial statements for 2023

According to a report by www.tagesschau.de,

The RAG Foundation in Essen has completely written off its investments in the insolvent Signa Group. Nevertheless, the annual balance for 2023 is positive.

The RAG Foundation has assets of 17.6 billion euros and has written off its investments in the insolvent Signa Group by between 180 million and 350 million euros. Despite this loss, the RAG-Stiftung's annual balance sheet for 2023 shows a positive result.

CEO Tönjes explained that the write-off of the investments in Signa does not pose any further risks, but on the contrary even offers potential opportunities. The RAG Foundation is confident that its investments in luxury properties in premium locations such as the Golden Quarter in Vienna continue to exist.

It was also reported that the RAG-Stiftung made significant overall profits last year through other investments and that the expenses for perpetual tasks in mining were lower than expected. The planned result was exceeded and a result of around 400 million euros is expected to have been achieved.

The write-off of investments in the insolvent Signa Group therefore has no serious impact on the overall financial situation of the RAG-Stiftung. The positive annual balance sheets and the profits from other investments help ensure that the financial sector and the market are not severely affected.