In a significant development surrounding the financial collapse of Signa Holding, Swiss investor Arthur Eugster, who is also the major shareholder of Eugster/Frismag AG, revealed that he estimates his losses from the downfall to be around 650 million francs (approximately 676 million euros). This disclosure was made public through reports by the Kurier, highlighting testimony from Eugster during witness examinations in an ongoing investigation against Signa founder René Benko.
Eugster, known for his substantial wealth, estimated between 600 to 700 million francs, is not just a casual observer but directly involved as he still holds an 11.5% stake in Signa Holding. His insights come amid swirling controversies and accusations surrounding Benko’s management practices, particularly regarding a capital increase in 2023 that many believe was handled dishonestly.
According to testimony provided by Eugster, during a capital procurement meeting held in Berlin in May 2023, Benko initially proposed a necessity for 500 million euros to instill confidence in banks about the financial stability of Signa. Shortly thereafter, this figure was adjusted to a “modest” 350 million euros. However, Eugster indicated that there was deception involved, as Benko implied that his own family’s charitable trust would contribute 35.35 million euros while substantial portions of this funding actually stemmed from Eugster’s own company.
"We were led to believe that everyone (the other shareholders) would participate," Eugster stated, echoing a sentiment that has become a recurring theme in testimony against Benko. Eugene also pointed out that the precise purpose for which the Signa Holding required the funds was neither explained nor communicated clearly, at least not to him directly.
Daniel Dolpp, Eugster's CFO, echoed these concerns during the testimony, declaring, "He simply cheated us," a quote that starkly summarizes the frustrations felt by Eugster and his financial team. Dolpp recounted how the assurance of contracts and financial documents following their initial investment never materialized, leading to questions about the legitimacy of Benko's operations.
As the investigation unfolds, documents have suggested that Benko orchestrated a series of transactions that obscured the true nature of the funds, allegedly rerouting them back to himself through various channels disguised as 'fresh equity'. Within this complex economic web, Eugster transferred around 33 million euros, believing he was securing a stake in well-managed assets. However, instead of receiving support or clarity on this investment, he expressed feeling “disappointed and subsequently angered” upon realizing that Benko had not honored any agreements made during the capital raise.
For context, the background of this crisis includes significant loans granted by Eugster/Frismag and their impactful presence in the Signa Holding structure over the years. In November 2023, Signa filed for bankruptcy, compounding pressures on Benko, who has been held in pre-trial detention since January 2024 facing serious charges including fraud, invoice forgery, and insolvency offenses.
The chain of events stemming from the bankruptcy has resulted in cascading failures not only for the Signa Holding but across its partners too; the fallout continues to amplify relationships and trust among investors and stakeholders involved in the wider Signa web. Eugster’s financial contributions, coupled with Benko’s alleged misconduct, bring to light the precarious nature of investment practices in today's high-stakes financial landscape.
As entities around the world track the developments surrounding this case, the approaches taken by Eugster and his team serve as case studies for potential investors on the importance of transparency and communication. The unfortunate chain reaction fostered by one individual's alleged deceptive behavior can lead to significant rippling effects across industries, emphasizing due diligence and accountability in investment communities.
In the face of the ongoing legal battles and financial scrutiny, Arthur Eugster remains a key voice in the discourse on ethical investment practices, insisting that honesty and integrity must serve as the bedrock upon which such partnerships are built. As the investigations continue, the repercussions of Benko's actions are likely to reverberate throughout the corporate world for years to come, making this a case worth following closely.
