Officially, 100% of EiDF was worth 1,721 million euros on the stock market on Sunday, although it had been suspended from trading since April 14, when it was suspended from trading by the National Securities Market Commission (CNMV). Only 24 hours later, and a stock market crash of 69.99%, the valuation of the Galician photovoltaic group collapsed to 517 million. Overnight, a single shareholder has provisionally lost close to 1,000 million fortune.
Specifically, the executive president of EiDF, Fernando Romero Martínez, is the main shareholder through Prosol Energía SL with 72.16% of the shares, he was in possession of shares that at the opening of Monday were worth 1,241 million euros, but at closing only 373 million. In a matter of hours, 868 million of Romero’s stock market assets that had risen to the Spanish Forbes list of the richest with more than 1,000 million assets were volatilized.
It is one of the largest daily losses of a single shareholder registered on the Spanish stock market. In absolute terms, we must go back to March 2022 when the fortune of Amancio Ortega (owner of 60% of Inditex) decreased by more than 2,000 million after closing Zara’s activity in Russia. Proportionally, Abengoa’s 70% drop in March 2017 appears as a similar record to that of EiDF.
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Everything seems to indicate that this figure will continue to decline this Tuesday due to the bearish close of EiDf on the stock market. The company remained strangled in the stock market without the ability to balance the book of purchase and sale orders, although it only marked a price in the closing auction. The 34,827 titles that were for purchase were then crossed but there were more than 100,000 shares for sale without a buyer. The effective volume barely exceeded 310,000 euros.
The low stock market liquidity of EiDF has been the great engine of the listing since July 2021, with demand boosting its value on the stock market day after day. In addition to Romero, two other shareholders appear with relevant shares. The second largest partner is Alejandro Alorda, owner of Mass Investment Ark 2001 SL, which holds 7.6% of the company’s capital. In third place is Julio Sergio Palmero Dutoit, owner of Memento Gestión SL, which has 6.6% of EiDf, according to the latest record released by BME in mid-July.
Four and a half months ago, the supervisor then answered the call from the PWC auditor who was holding a pulse with the company’s management on the 2022 accounting. EiDF was in the process of jumping from BME Growth to the Continuous Market of the Spanish stock market , which has stricter listing standards and is directly supervised by the CNMV instead of the BME company.
They agreed to submit to a kind of arbitration in the form of a ‘forensic’ report -forensic accounting or later another firm, Deloitte, which detected a trail of accounting irregularities. At the same time, EiDF launched a plan to correct them, such as the negative working capital of 20 million euros that it had incurred. In fact, the firm proceeded to sell assets and amortize short-term debt that it had issued to solve it.
The invoices of the Romeros to EiDF
Last week, the CNMV asked the company to emphasize the accounting gaps that appeared in the ‘forensic’ and clarify their publication, demanding the dissemination of the full Deloitte report. He did so after the president and main shareholder, Fernando Romero, published fragments of it interspersing his personal vision, contextual comments on the progress of the company and qualifying adjectives about the content of the ‘forensic’.
Despite these discrepancies, the CNMV complied because, in reality, the real stock market supervisor for EiDF was none other than BME, owner of the alternative market in which the energy company is listed. The supervisor achieved its objective of alerting the company’s investors about the content of some forensic accounting conclusions: “The CNMV considers that the published information is not complete and includes very serious omissions. Deloitte’s forensic report includes a account of facts and evidence of great importance for the shareholders of EiDF. Among all, the evidence of a possible falsification of documents stands out.”
Specifically, Deloitte detected 11 debtors of the company that are directly or indirectly linked to Romero Martínez, chief executive and owner of 72.16% of EiDF. “The study of the operations of the companies has led to the identification, among others, of incidents related to invoices and payments for services that could not have been provided or that are not justified,” reads the statement that alleviates the possibility of fictitious billing. between related parties.
“During the period analyzed, the report detects money transfers between EiDF and Prosol Energía (Romero); likewise, it can be seen that Prosol Energía and Prosol Value made transfers to the rest of the entities integrated in the debtor perimeter. Even though the Forensic affirms that they do not know “The reason for these transfers acknowledges, in another passage, that Prosol Energía has a current account commercial contract with the company, dated June 12, 2018,” Deloitte continues, according to the version published by EiDF.
Reb and Hire and Alto Churrasky Albujón, Ikav and Sinia, in addition to the relationship of Óscar Romero Martínez, brother of the president.
From 2020 to 2022, Albujón went from being a consulting partner that helped identify land, facilitated contacts in the generation area and collaborated with marketing actions, according to the Deloitte report, to become an EiDF project partner that was also going to participate in more than 28 of them as co-owner: “There are three contracts between the two companies that the forensic report considers were made later, with the apparent objective of justifying the relationship between them, as well as 2023 invoices that may not correspond to services actually provided by Albujón”.