Investigation into Azerion shareholder misconduct prompts CEO to temporarily step down

The co-CEO and founder of Amsterdam-based Azerion announced on Monday that he will temporarily step aside from his role while the Dutch Authority for the Financial Markets (AFM) investigates allegations of wrongdoing. The online gaming and entertainment company announced on Monday that Atill Aytekin will not continue in his role for the time being, while his business partner, Umut Akpinar, will continue as full CEO.

The company said the investigation “appears to be related to compliance with article 15 of the Market Abuse Regulation and seems to be focused on the shareholders of Principion Holding B.V., including Azerion co-CEOs Atilla Aytekin and Umut Akpinar. Principion is Azerion’s largest shareholder.”

Article 15 succinctly states, “It is prohibited to manipulate the market or attempt to manipulate the market.” According to the AFM, the article covers a broad range of prohibitions, including a ban on issuing false or misleading information about the pricing of a financial instrument, or the supply and demand of such instruments. This can include publicly traded shares. Artificially pumping up the price of a financial instrument is also forbidden.

Azerion is listed on Euronext. It opened at 2.52 euros per share on Monday, and plunged to an all-time low of 1.91 euros by 11:07 a.m. before rising back up to 2.05 euros an hour later. Shares in the company were trading at a 52-week high of 9.20 about one year ago, close to its all-time high of about 10 euros per share.

A spokesperson for the AFM told ANP that an investigation is underway, but could not comment on any details as the process is ongoing.

“The AFM approached Azerion on Tuesday 7 March 2023 to obtain information. The Company is fully available to answer any questions of the AFM,” Azerion said. Aytekin and the Supervisory Board jointly decided that he should step back, while Akpinar and CFO Ben Davey ensure continuity of operations.

Principion Holding, which is the focus of the investigation, also owns 65 percent of Fortuna Sittard. The Eredivisie football club is still led by Işıtan Gün, who sold off much of his holdings in the team, but remains its chair.