euro adhoc: Vivacon AG
Strategic management decisions
Vivacon AG realises
comprehensive cost-saving programme and rearranges
Management Board
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
Company Information
12.12.2008
Vivacon AG (ISIN 000604 8911) starts realignment measures with regard to the next financial year. The Company refocuses the activities on its core competences, being the sale and the management of residential real estate and the acquisition of ground leases.
In conjunction with this realignment, the following measures have been decided:
Vivacon AG immediately closes down its offices in Frankfurt, Prague and Luxemburg and concentrates its activities - apart from the property management business - at the Cologne headquarter.
More than 50 of 260 subsidiaries will be merged or closed. Also the number of employees has been considerably reduced.
The initiated measures will reduce costs by approximately EUR 5mn annually.
The responsibilities of the Members of the Management Board have been reorganized. Mr. Michael Jung will leave the Board by mutual agreement at the end of this year and will continue to advise the Company on special projects. Mr. Timo Herbrand will change from the Management Board to the Supervisory Board of the Company as per 31st of December. Mr. Frank Zweigner, currently Deputy Member of the Board, will succeed Mr. Herbrand and become Member of the Management Board. He retains responsibility for the Investment Management division. Mr. Michael Ries continues to head the Marketing and Sales divisions.
The Supervisory Board explicitly appreciates the contribution made by the departing Board Members during the last years.
In his role as Supervisory Board Member Mr. Eckhard Rodemer will advise the Management Board on financial matters, which has been the responsibility of Mr. Jung. Mr. Rodemer has accumulated more than 30 years of experience with banks and real estate companies.
Furthermore the Company discloses that the securitization transaction of the ground lease cash flows in an amount of EUR 90m, announced as Corporate News as per November 12, 2008, has been successfully closed.
end of announcement euro adhoc
Further inquiry note:
Maren Nolte
Tel. ++49(0)221 130 5621-783
Email: maren.nolte@vivacon.de
Branche: Real Estate
ISIN: DE0006048911
WKN: 604891
Index: SDAX, CDAX, Classic All Share, Prime All Share, DAX
International 100
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse München / regulated dealing