MLP takes legal action against demands

Wiesloch, 18th January 2012 – MLP AG will file for a negative declaratory judgement by the Regional Court of Frankfurt against some of the former shareholders of the subsidiary Feri AG. Through this action, MLP seeks to obtain court confirmation that their asserted claim for an increase in the purchase price for the remaining shares acquired in April 2011 by EUR 51.5 million is unjustified. “The demand by this group of shareholders is completely without legal foundation and, from our perspective, has no realistic possibility of succeeding,” comments Dr. Hans-Joachim Letzel, Head of Legal Affairs and General Counsel at MLP.

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 a conclusive agreement with a large portion of the former Feri shareholders, including the current Feri management.

However, within the framework of these discussions, a separate element of the former shareholders collectively suggested that MLP had breached its contractual obligations. “After five years of successful cooperation, we were surprised that some of the former shareholders should start to accuse MLP of a breach of contract,” explains Dr. Hans-Joachim Letzel. “We do, of course, very much regret that we couldn’t find a mutually acceptable solution. In order to decisively counteract these demands from the outset, MLP will now file for a declaratory judgement.”

In autumn 2006, MLP acquired a 56.6 percent stake in Feri AG and announced its intention at an early stage to also purchase all the remaining shares – which took place as scheduled in April 2011.

Download press release (PDF, 42KB)