Eurofins, the laboratory testing firm, announced on Thursday its intention to provide further details about its real estate activities following recent scrutiny raised by short-seller Muddy Waters last month.
Muddy Waters had cast doubts on Eurofins’ financial reporting and specifically questioned transactions related to real estate involving Gilles Martin, the company’s CEO and controlling shareholder.
Eurofins has refuted these allegations, stating that certain real estate transactions in question involve Analytical Bioventures SCA (ABSCA), a company controlled by CEO Gilles Martin.
“In accordance with previous statements issued by Eurofins, over the past decade, each expansion of facilities funded by ABSCA on ABSCA-owned sites has involved lease agreements determined to be at arm’s length. These determinations were based on appraisals of comparable properties conducted by independent external experts,” Eurofins clarified on Thursday.
The company also disclosed plans to potentially acquire real estate currently owned by ABSCA, subject to shareholder approval, for long-term use.
Eurofins continues to emphasize transparency and compliance in its real estate dealings amidst ongoing scrutiny and maintains its stance against the allegations put forth by Muddy Waters.
