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The investor Riyal Al Thani becomes the third shareholder of the English court

The sheikh, who has been involved for three years, definitively converts to 10% of the shares the loan that he granted three years ago to the department stores

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The investor Riyal Al Thani becomes the third shareholder of the English court

The sheikh becomes 10% in third shareholder of group behind Foundation Ramón Areces (37.39%) and patrimonial Society IASA (22.18%) that share sisters Marta and Cristina Álvarez Guil (Daughters of Isidoro), his cousin Dimas Gimeno and mor and uncle of ES Te (Isidoro Brors) in proportion of 70/30.

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As for family pulse, riyal, through its representative on Board of directors, Shahzad Shahbaz, has been on lookout without wanting to give an opinion. Gimeno tried to bring him closer to his cause and at least abstained from Council's decision to dismiss him from presidency, although he n agreed to appointment of substitute. Its manifest objective is that society goes to stock market, something that is still waiting, although rose claimed that it was part of ir plans. But it can be decisive in decision to enter 225 million and not turn it into actions. Possibly, in council planned by end of this month can clear doubts and more in meeting of shareholders at end of August, in which it is expected to remove Gimeno from position that maintains in Council as final end of siege to which it was s Ometido.

The landing of Al Thani in English court was an event. It was hard to imagine that in a company traditionally as closed as department stores entered an external investor and less foreign. But crisis also made a dent in empire and company needed money. He was n president, Isidoro Álvarez, along with his nephew and Dolphin, Dimas Gimeno, who negotiated for months arrival of former prime Minister of Qatar, who distributed his investments in different sectors of different countries, especially in services in United Kingdom. The veteran businessman concluded, in addition to convertible loan in stock, company's exit to stock market.

But Isidoro Álvarez died in September 2014 and when Sheikh Riyal's arrival in July 2015, 10 months had passed. Therefore, operation was closed by Gimeno and assumed that company would yield 10% of capital by aforementioned loan of 1 billion over three years. In or words, company was valued at 10 billion euros and company would thus detach itself from an autoportfolio. In addition to sitting on board of directors with a position, investor reserves possibility to charge 225 million of interest on loan or increase its share by an additional 2.25%. That is, it could have passed to 12.25%, but it has decided to charge that part in cash and stays at 10%.

What could be summed up in future is anor 2% in terms of clauses contained in initial agreement, according to which I would add 1% if no objectives of EBITDA are fulfilled (and it seems that y will not be fulfilled) and anor 1% conditioned to exit to bag , so that if company has a value lower than 10 billion in which it was valued, it would be entitled to that percentage. I mean, I could still end up opting to control 12%.

Conflict for Patrimonial society

It is precisely in this society that conflict that Gimeno and his cousins maintain is centered. They have control of estate and have not allowed or party to use ir participation, which would allow m to earn income to pay inheritance tax to community of Madrid. This society focuses on demands brought by César and María Jesús Álvarez against ir nieces in which y accuse m of having reduced 140 million to 50,000 euros capital of company without notifying or shareholders. Likewise, re is a civil lawsuit of María José for having reduced from 10 to five million direct inheritance that it received from his bror giving for good a document expressing alleged will of Isidoro Alvarez. There is also a challenge to accounts of aforementioned patrimonial.

In addition, Gimeno challenged council in which he was snatched from presidency of company to Otorgársela Jesus Nuño de la Rosa and subsequently filed a complaint against responsible security company, Juan Carlos Fernandez-Cernuda, who accuses of Fraud and overpricing for having awarded English court contracts to ir companies and having inflated prices. All with knowledge of or members of management team of company. In parallel, company is waiting for consultant EY to complete investigation that he commissioned in times of Gimeno in presidency.

There is no date for Council to receive consultant's report, but everything indicates that it will lengn after summer. And something similar can happen with lawsuit, which fell in court number 45 in Madrid, and on which Gimeno still has no news of his admission to proceedings. According to evidence, it is very possible that re is no news until after meeting of shareholders of August, in which Gimeno can no more be a member of Council in what would be anor step in its decoupling of company.

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