LI – CLR talks for merger

Laiki Investments is just one step before the acquisition of CLR Capital. According to a report in newspaper “Politis”, the two companies are in negotiations for a possible merger, which will be carried out under Laiki Investments with the issue of new shares to the shareholders of CLR. According to “Politis”, Marfin Popular Bank is expected to control 43% of the new group and the three major shareholders of CLR Capital – Lambros Panayiotides and Costas and Kalliopi Toumbouris 25%. After the latest reports, the CSE decided to suspend the trading of the two companies. “This decision was taken for the protection of investors, pursuant to Article 183 of the CSE Law and will be adopted on Wednesday, July 18, 2007 as well in case that the two companies fail to give clarifications on the issue”, the CSE announcement reported.

The current capitalization of CLR stands at €64.4 million and Laiki Investment as €122 million. Both companies generated profits in 2006. Laiki Investments generated net profits of €4,2 million and CLR of €1.8 million.

From 2002 to 2005, CLR suffered losses. Since 2002, LI suffered losses as well but it returned to profitability in 2005.

In the first half of 2007, CLR held 13.1% of the CSE transactions (with packages) and 14.08% (without packages). Laiki Investments held 9.82% (with packages) and 10.5% (without packages).

In the past few days, CLR Capital sold shares of Laiki Investments. From 10/7 to 13/7, CLR Capital proceeded to a sale of 1 million shares of LI.