Orco calls for investigation into alleged market manipulation

Oco Property Group has asked the Czech National Bank to investigate an activist shareholder, Ing. Lubos Smrcka, and SOS Orco, the group for small shareholders he leads, for alleged market manipulation. In parallel, Orco's president and CEO Jean-François Otto has filed a defamation action in the City Court of Prague against Smrcka and SOS Orco.

Orco is based in Luxembourg, and listed on NYSE Euronext, Prague, Warsaw and Budapest Stock Exchanges.

The company said in a statement on Thursday that its management had maintained a 'permanent and constructive dialogue' with all of Orco's shareholders and stakeholders.

'While Smrcka and SOS purport to represent the interests of a sizeable percentage of Orco's minority shareholders, Orco questions how many shareholders they actually represent and whether their goals and interests are aligned with those of Orco's other shareholders,' Orco added.

The company accused the SOS Orco group and Smrcka of having repeatedly disclosed 'misleading, defaming and false information' concerning Orco on SOS's website and in the media. Orco said that there was an increased trading volume in Orco shares on the Prague Stock Exchange shortly after such disclosures were made.

Orco is an investor, developer and asset manager in the Central European real estate and hospitality market. The company currently manages assets of approximately EUR 2.5 bn.