Gigaset AG: Arbitration filed against Gigaset AG based on 2006 transaction
Gigaset AG / Key word(s): Legal Matter
03.05.2012 19:52
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Munich, May 03, 2012. Evonik Degussa GmbH ('Evonik') has filed arbitration
proceedings against Gigaset AG ('Gigaset') at the Deutsche Institution für
Schiedsgerichtsbarkeit e. V. (German Institution of Arbitration) and
demands payment of a penalty of EUR 12 million by Gigaset on the basis of a
contract entered into in 2006.
Gigaset has rejected both the allegations and claims made by Evonik and
will defend itself against the arbitration proceedings. Gigaset bases its
assessment on a report from a reputable law firm. In consultation with the
auditors, Gigaset has adequate provision for risk of loss in the 2011
financial statements.
Under an agreement dated September 8, 2006, Gigaset (at the time operating
under the name Arques Industries AG) acquired a company called Oxxynova
from Evonik. In this agreement and subject to various conditions, Oxxynova
undertook to maintain its production site at Lülsdorf. Oxxynova's
undertaking was secured by a penalty, and Gigaset issued a contractual
guarantee for this obligation.
Evonik claims, in essence, that the Oxxynova group had violated their
undertaking to maintain the company's location Lülsdorf at the end of 2007.
As guarantor, Gigaset was liable jointly and severally
(gesamtschuldnerisch) for the penalty.
Gigaset considers the action to be unfounded. In particular, Gigaset is of
the opinion that Oxxynova had not breached the contract but was entitled to
close the Lülsdorf site. This was expressly permitted by the contract under
certain conditions. These conditions were met. Since Oxxynova owed no
penalty, it was consequent that there cannot be a claim against Gigaset.
Gigaset bases this assessment, inter alia, on a report from a reputable law
firm.
Gigaset AG, Munich, is a globally operating company in the area of
telecommunications and accessories. The Company is one of the worldwide
leading manufacturers of cordless telephones and Europe's market leader in
DECT telephones. The premium supplier ranks third with 1,900 employees and
a market presence in more than 70 countries.
Shares of Gigaset AG are traded in the TecDAX (Prime Standard) of the
Frankfurt Stock Exchange under the symbol 'GGS' (ISIN: DE0005156004).
You can find further information online under http://www.gigaset.ag
Contact:
Gigaset AG
Kerstin Diebenbusch
Investor Relations
Tel.: +49 (0)89 444456-937
E-mail: info@Gigaset.com
03.05.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Gigaset AG
Hofmannstraße 61
81379 München
Germany
Phone: +89444456937
Fax: +89444456930
E-mail: kerstin.diebenbusch@gigaset.com
Internet: www.gigaset.com
ISIN: DE0005156004
WKN: 515600
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of Announcement DGAP News-Service
---------------------------------------------------------------------------
Gigaset AG / Key word(s): Legal Matter
03.05.2012 19:52
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Munich, May 03, 2012. Evonik Degussa GmbH ('Evonik') has filed arbitration
proceedings against Gigaset AG ('Gigaset') at the Deutsche Institution für
Schiedsgerichtsbarkeit e. V. (German Institution of Arbitration) and
demands payment of a penalty of EUR 12 million by Gigaset on the basis of a
contract entered into in 2006.
Gigaset has rejected both the allegations and claims made by Evonik and
will defend itself against the arbitration proceedings. Gigaset bases its
assessment on a report from a reputable law firm. In consultation with the
auditors, Gigaset has adequate provision for risk of loss in the 2011
financial statements.
Under an agreement dated September 8, 2006, Gigaset (at the time operating
under the name Arques Industries AG) acquired a company called Oxxynova
from Evonik. In this agreement and subject to various conditions, Oxxynova
undertook to maintain its production site at Lülsdorf. Oxxynova's
undertaking was secured by a penalty, and Gigaset issued a contractual
guarantee for this obligation.
Evonik claims, in essence, that the Oxxynova group had violated their
undertaking to maintain the company's location Lülsdorf at the end of 2007.
As guarantor, Gigaset was liable jointly and severally
(gesamtschuldnerisch) for the penalty.
Gigaset considers the action to be unfounded. In particular, Gigaset is of
the opinion that Oxxynova had not breached the contract but was entitled to
close the Lülsdorf site. This was expressly permitted by the contract under
certain conditions. These conditions were met. Since Oxxynova owed no
penalty, it was consequent that there cannot be a claim against Gigaset.
Gigaset bases this assessment, inter alia, on a report from a reputable law
firm.
Gigaset AG, Munich, is a globally operating company in the area of
telecommunications and accessories. The Company is one of the worldwide
leading manufacturers of cordless telephones and Europe's market leader in
DECT telephones. The premium supplier ranks third with 1,900 employees and
a market presence in more than 70 countries.
Shares of Gigaset AG are traded in the TecDAX (Prime Standard) of the
Frankfurt Stock Exchange under the symbol 'GGS' (ISIN: DE0005156004).
You can find further information online under http://www.gigaset.ag
Contact:
Gigaset AG
Kerstin Diebenbusch
Investor Relations
Tel.: +49 (0)89 444456-937
E-mail: info@Gigaset.com
03.05.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Gigaset AG
Hofmannstraße 61
81379 München
Germany
Phone: +89444456937
Fax: +89444456930
E-mail: kerstin.diebenbusch@gigaset.com
Internet: www.gigaset.com
ISIN: DE0005156004
WKN: 515600
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of Announcement DGAP News-Service
---------------------------------------------------------------------------