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Renos Hadjioannou Purchases Assets

The company Renos Hadjioannou Farms Ltd. announced that during its Board meeting of the 29 May 2001, the binding agreement for acquisition of the company Depalko Ltd. was examined, as notified to the CSE on the 15 March 2001, the company being the owner of a poultry unit belonging to Mr. Christakis Panayiotou of Deneia, and who has reached binding agreements for acquisition of the poultry units of Mr Eleftherios Ioannou of Limassol and Petrides Poultry Farm Ltd.

The Board decided that its financial advisors and its Financial Director examine whether it would be equally beneficial instead of acquisition of the company Depalko Ltd., for Renos Hadjioannou Farms to proceed with the acquisition of the assets only of the poultry farms of Mr. Christakis Panayiotou, Mr. Eleftherios Ioannou,of the company Petrides Poultry Farm and estates of Savvas Petrides which Depalko Ltd. was to purchase.

During an extraordinary Board meeting of the company which took place on the 15 June 2001, it was decided that Renos Hadjioannou Farms Ltd. proceed with the acquisition of the aforementioned assets which would have belonged to Depalko Ltd. instead of the actual company. By this change in the agreement, Renos Hadjioannou Farms announced that it has reached the following binding agreements:

1. Purchase of the assets of the poultry farm of Mr. Christakis Panayiotou of Deneia and Mr. Eleftherios Ioannou of Limassol against the sum of CYP 748.000 as follows:

a) CYP 550.000 in cash
b) 495.000 shares of Renos Hadjioannou Farms Ltd. at the issue price of 40 cents to be issued on the 18 June 2001 whereby, 440.000 shares of Renos Hadjioannou Farms at the issue price of 40 cents each to Mr. Christakis Panayiotou and 55.000 shares to Ms Elli Panayiotou.

2. Acquisition of assets

a) Of Petrides Poultry Farm Ltd.
b) The right to sell and produce poultry under the name Petrides Poultry Ltd.
c) Land equalling 11.750 sq.m. from Savvas Petrides, main shareholder of Petrides Poultry Farm Ltd.

The acquistion cost is CYP 222.000, payable as follows:

a) 305.000 shares of Renos Hadjioannou Farms Ltd. at the issue price of 40 cents to be issued on the 18 June 2001 to Mr. Savvas Petrides.
b) CYP 100.000 in cash.

The issue of 800.000 shares in exchange for the above agreements was made on the 18 June 2001 in accordance with relevant authorisation by the General Meeting of the company through a special resolution of the 6 November 2000 as previously announced and based on a Board decision of the 15 June 2001.

The acquisition of the assets of Depalko is at its net value without payment for goodwill. For the acquisition of Petrides Poultry Ltd. a goodwill of CYP 77.255 is payable which is considered justified by the Board in view of the fact that it is the only unit producing naturally-reared poultry in Cyprus and that the company anticipates that in October when new legislation is implemented, it will secure the necessary license.
Tuesday, 19 June, 2001 - 11:41