LPP accuses Hindenburg Research of a disinformation attack and a possible attempt to take over influence in the LPP company. The LPP Group has full control over the situation, LPP announced.
Hindenburg Research Report
“Report prepared by Hindenburg Research is an element of an organized disinformation attack that has been prepared for 5 months and is aimed at reducing the share price of the LPP Group. We had previously informed the Ministry of Foreign Affairs about the matter National Tax Agency. From what we have established, we are not the first company that has become the object of interest of intelligence agencies. Previously, a similar procedure was carried out by Hindenburg aimed at the Adani company. We also know that the intelligence agency operates on behalf of third parties. It cannot be ruled out that such activities may be an attempt to take over influence in LPP. The group has full control over the situation. We will provide any additional information on an ongoing basis,” we read in the statement.
Previously an analytical and investment company Hindenburg Research reported that LPP did not abandon its operations in Russia after the invasion of Ukraine. According to a report by Hindenburg Research (quoted by money.pl), LPP had ambitious plans for further expansion in Russia. After the outbreak of the war LPP announced the disposal of Russian assets – it announced plans to dispose of its Russian company, on April 28, 2022 it announced its intention to sell, and on May 19 it announced the end of negotiations with the buyer. The transaction was finalized on June 30, 2022.
However, Hindenburg claims that the actions taken were apparent and a hoax. The American company emphasized that despite the loss of approximately 20% of revenues due to the alleged exit from Russia, LPP recorded a 13% increase in revenues in the 2022/23 financial year, and revenues on markets other than Russia increased by 40.5% y/y . According to the report, LPP uses Kazakhstan to supply Russian stores, and import-export data shows that in 2023, LPP sent goods worth approximately USD 755 million to its Kazakh subsidiary, even though Kazakhstan accounts for 1%.
LPP rate
Approx. time. 10:45 the price of LPP shares on the WSE dropped by over 27%.
LPP manages the fashion brands Reserved, Cropp, House, Mohito and Sinsay. The company has been listed on the Warsaw Stock Exchange since 2001; is included in the WIG20 index. In the 2022/2023 financial year (February 2022 – January 2023), the company had PLN 15.9 billion of consolidated revenues.
(ISBnews)
