Praktiker AG, Germany’s largest home-improvement retailer, fell to the lowest in more than three months after postponing its annual meeting amid talks with “potential investors” on financing a reorganization.
Praktiker tumbled as much as 6.7 percent to 1.37 euros, the lowest intraday price since Jan. 5, and traded down 3.4 percent as of 12:10 p.m. in Frankfurt. The company will put off the annual shareholders meeting, originally scheduled for May 31, until an unspecified date in the second half of June, Praktiker said today in an e-mailed statement.
The financing of Praktiker’s restructuring program remains on the meeting’s agenda, the Kirkel-based company said. The management board and the supervisory board jointly decided to delay the meeting as the talks with investors still require further examination, it said.
The stock has fallen 81 percent in the last 12 months as the retailer has cut earnings forecasts and asked bondholders to contribute to its restructuring measures.
Chief Executive Officer Thomas Fox, who ran German department-store operator Karstadt for two years after its insolvency, was appointed to his current post in August with a mandate to stop cash outflow and narrow losses. He announced a 300 million-euro ($393 million) financing program in November as part of a reorganization that includes eliminating unprofitable outlets and cutting 1,400 jobs.