Commercial real estate company Summit Germany Ltd (LON:SMTG) saw their shares dip in trading on Wednesday following an announcement that the offices of their major shareholder, Summit Real Estate Holdings (TLV:SMT), had been searched as part of an ongoing investigation.
Summit in deep water
The investigation is into insider trading in Israel, and the Israeli Security Agency interviewed SREH officers including Summit Germany managing director Zohar Levy.
“The company understands that this is part of a broader investigation into an individual’s securities dealings in a number of companies listed on the Tel Aviv Stock Exchange and does not directly involve Summit Germany,” the company said in a statement.
SMTG as a portfolio prospect
Tel Aviv-listed SREH owns 50.9% of the German property investor, and as such, a prudent investor would perhaps hold fire on any long-term commitments until the events of the ongoing investigations are allowed to transpire.
The firm’s shares have dipped in Wednesday trading in the wake of the day’s announcements. Shares are currently down 0.15 EUR or 11.44% at 1.19 EUR 20/09/19 15:38 GMT.