Gigaset AG: Arbitration filed against Gigaset AG based on 2006 transaction
Gigaset AG / Key word(s): Legal Matter
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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: firstname.lastname@example.org Internet: www.gigaset.com ISIN: DE0005156004 WKN: 515600 Indices: TecDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart
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