On September 14, Finnish newspaper Kaleva reported that assets belonging to the former owners of Pölkky had been seized. In the article’s headline, Pfeifer Group’s Josef Dringel is quoted as saying: “We were deliberately misled.” Talking to the Holzkurier, the Pfeifer Group confirmed:
- that arbitration proceedings are pending against all sellers of Pölkky Oy – including former CEO Petteri Virranniemi.
- that arbitration is pending against Petteri Virranniemi concerning his liability as the company’s former CEO.
- that Pfeifer filed a request on November 14, 2023 to freeze the assets of all Pölkky sellers in the amount of €60.2 million.
- that Pölkky/Pfeifer filed a request to freeze the assets of Petteri Virranniemi in the amount of €2.7 million.
- that the sellers of Pölkky Oy deliberately misled the company during the takeover process.
Since the arbitration proceedings have not yet been concluded, Pfeifer will not comment further on the matter.
As a reminder: In December 2022, Pfeifer Holding of Imst signed an agreement to acquire Pölkky Oy from the former owner family Virranniemi. The transaction was closed on January 31, 2023. Apart from Binderholz, HS Timber and Mayr-Melnhof Karton, another Austrian timber company has made an acquisition in Finland.
Incorrect information, deal too expensive
According to the newspaper, the allegation that the purchase price was too high is based on “misleading, inaccurate and incomplete information about the investment costs of the Kajaani and Taivalkoski sawmills”. The Pfeifer Group is of the opinion that, given the incorrect information, it would be entitled to a price reduction or compensation or both from the Virranniemi family. The Virranniemi family on their part disagree and consider the claim to be unfounded. In their opinion, Pfeifer should make its claim on the insurance company since the purchase was insured.
In a ruling in May 2023, the Oulu District Court found that Pfeifer has presented sufficient evidence to support its claim and that the conditions for a lawsuit were met. “There is a risk that the defendants will hide, destroy or sell their property or act in any other way that jeopardizes the plaintiff’s claim,” the court stated, according to Kaleva.
The court ordered the seizure of Virranniemi’s assets worth €60.2 million to secure Pfeifer’s claim and the associated default interest. The Virranniemis appealed against this decision to the Court of Appeals. Last Monday, on September 9, the latter ruled that there was no reason to overturn the District Court’s ruling.
On the same day, the Court of Appeals also decided to seize Petteri Virranniemi’s property worth more than €2.7 million.
Pölkky/Pfeifer claims that in his capacity as CEO, Virranniemi caused damage to the company either intentionally or at least in a grossly negligent way. He allegedly allowed Pölkky to order unnecessary services from another company. Virranniemi denies this.
Initially, the Oulu District Court dismissed Pölkky’s/Pfeifer’s lawsuit. Pölkky/Pfeifer appealed to the Court of Appeals – and won. The Court of Appeals ordered the seizure of Virranniemi’s assets in the amount claimed. Decisions of the Court of Appeals can only be appealed to the Supreme Court, if the appeal is allowed.
Thus, the court decisions regarding the freezing of assets were made in Pfeifer’s/Pölkky’s favor.
