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Acquisition of Aztec Holidays Ltd.


The company announces that it has signed the basic conditions of the agreement (Heads of Agreement) for the acquisition of the whole of the issued share capital of the English firm Aztec Holiday Ltd. and in return the company will proceed to the issue and allotment of 1,100,000 new Libra shares, of nominal value 0.10CYP to the existing shareholders of Aztec Holiday Ltd., each under the following conditions:

1. 750,000 will be issued and allotted at the time when the shares of Aztec will be acquired.

2. The rest 350,000 shares will be issued and allotted within 10 days after the completion of the financial statements for the year ending on December 31, 1999. Aztec guarantees profits after taxation for the fiscal year ending December 31, 1999, no less than 500,000CYP. In case the profits are less than 500,000CYP, Aztec will pay the company in cash the amount that will equal the difference in profits times 3,5. The acquisition agreement is subject to the condition that at the time of the acquisition of the shares by the company, Aztec will be the basic partner (with 99.9%) of the Partnership Aztec Travel.

Aztec and the Partnership are engaged in the organization and offer tourist packages from the United Kingdom to Florida, Egypt, Cyprus and Greece and the total operations of Aztec and that of the partnership was for 1998, 7,178,000PS and for 1999, that ends on 31 December, is expected to be 11,026,000. The combined profits of Aztec and the Partnership for the corresponding periods were or are expected to be 236,000 and 591,000.

The company believes that with the acquisition of Aztec and the Partnership the prospects are very good for the expansion of the operations of the company to the United States and to Egypt. The acquisition establishes new synergies and prospects for the expansion of operations to new markets and destinations.

It is clarified that the completion of the agreement is amenable to the last approval of an Annual General Meeting of the company and to the adoption of a special resolution for the issuance and allotment of new shares to the existing shareholders of Aztec. The completion of the agreement is also amenable to the approval of the official quarters of the Republic of Cyprus, where the approval is necessary.
Δευτέρα, 23 Αυγούστου, 1999 - 00:00