German financial regulator Bafin is investigating Chinese conglomerate HNA Group Co. Ltd., Deutsche Bank AG's largest shareholder, over whether it correctly disclosed its holdings when building its stake in the lender, Bloomberg News reported Dec. 4, citing "two people with knowledge of the matter."
HNA, which first acquired shares in Deutsche Bank in late 2016, became the largest investor in the bank after it raised its stake to 9.92% in May.
"HNA's voting rights communications regarding Deutsche Bank were and are correct," a spokesman for HNA reportedly said in an emailed statement.
The news comes after the Swiss Takeover Board, in a separate case, found that HNA provided inaccurate information and failed to disclose ownership held by company executives in its takeover of Zurich-based Gategroup Holding AG, Bloomberg said.
In November, Bafin was reported to have dropped an investigation into whether HNA and the Qatari royal family, which also holds a significant but less than 10% stake in Deutsche Bank, coordinated their investments in the lender.
Meanwhile, the ECB was reported in July to be weighing up plans to conduct a special assessment of HNA and the Qatari royal family. Such investigations are typically performed on shareholders owning positions of more than 10%, but the ECB was said to be considering employing a possible exemption to the rule, which it can use if it deems the two investors to be exerting a considerable influence over Deutsche Bank.
