20/02/2007 11:38
The agreement for the sale of 64.3% of the share capital of the Cyprus Tourism Development Public Company Ltd (CTD), owner of Hilton Hotel, will make way to further cooperation between Louis Group and Marfin Popular Bank. The agreement concerns the sale of 57% of CTD against the sum of £30 million (€51.9 million) or £17.61 (€30.47) per share, while the major shareholder of Louis plc, Clin Company Ltd, will sell 218,798 additional shares or 7.3% against £3.9 million. The agreement is basically the first step of cooperation in the sector of tourism in the wider area of Southeast Mediterranean.
After the completion of the agreement, Louis will maintain its stake of 20% in CTD and will be represented in the Board of Directors.
According to an announcement released by Louis today, the sale of stake to Marfin Popular is expected to generate accounting profit of more than £9 million (€15.6 million) and to improve the Group’s profitability in the next years (£1 million p.a). The sale is also expected to boost the cash available of Louis by £29 million (€50.2 million), which will be used for the payment of debts and the completion of the Company’s strategic plans.
The completion of the agreement is subject to the “duel diligence” by the buyer, as well as the signing of the shareholders agreement within the period of 20 business days.
Hilton belongs to the Cyprus Tourism Development Public Company Ltd, subsidiary of Louis Group. In September 2000, the state-owned hotel was bought by Louis Group via tenders. Specifically, Louis acquired 81.3%, which corresponded to 2,440,110 shares against £9.30, submitting the sum of £22.7 million. According to the financial statements of CTD for 2005, its income from operations stood at £7.1 million, the net profit attributable to shareholders at £1.3 million and the earnings per share at 44.13 cents. The increase of £67 million derived from the positive impact from the drop in depreciations. It is worth noting that despite the improved turnover of Hilton Cyprus, the contribution to profits of the owner company was not proportional, due to the increased operating profits and staff cost.
Louis plc is the largest company of Eastern Mediterranean and is actively involved in the sectors of cruises and hotels. Its fleet includes 13 cruise ships, 4 of which are chartered by the British Thomson Cruises (of TUI Group) and 1 by the German Transocean. Four of Louis ships make cruises from Piraeus – Greece, two from Genoa – Marseille and two from Cyprus.
Louis Group has also seventeen 4 – 5 star hotels, fourteen of which are situated in the Greek islands, twelve in Cyprus and one in Sharm El Sheikh, Egypt. The new luxury unit in Egypt will open in 2008. The Group’s hotels in Cyprus include the two Hilton hotels in Nicosia.
After the completion of the agreement, Louis will maintain its stake of 20% in CTD and will be represented in the Board of Directors.
According to an announcement released by Louis today, the sale of stake to Marfin Popular is expected to generate accounting profit of more than £9 million (€15.6 million) and to improve the Group’s profitability in the next years (£1 million p.a). The sale is also expected to boost the cash available of Louis by £29 million (€50.2 million), which will be used for the payment of debts and the completion of the Company’s strategic plans.
The completion of the agreement is subject to the “duel diligence” by the buyer, as well as the signing of the shareholders agreement within the period of 20 business days.
Hilton belongs to the Cyprus Tourism Development Public Company Ltd, subsidiary of Louis Group. In September 2000, the state-owned hotel was bought by Louis Group via tenders. Specifically, Louis acquired 81.3%, which corresponded to 2,440,110 shares against £9.30, submitting the sum of £22.7 million. According to the financial statements of CTD for 2005, its income from operations stood at £7.1 million, the net profit attributable to shareholders at £1.3 million and the earnings per share at 44.13 cents. The increase of £67 million derived from the positive impact from the drop in depreciations. It is worth noting that despite the improved turnover of Hilton Cyprus, the contribution to profits of the owner company was not proportional, due to the increased operating profits and staff cost.
Louis plc is the largest company of Eastern Mediterranean and is actively involved in the sectors of cruises and hotels. Its fleet includes 13 cruise ships, 4 of which are chartered by the British Thomson Cruises (of TUI Group) and 1 by the German Transocean. Four of Louis ships make cruises from Piraeus – Greece, two from Genoa – Marseille and two from Cyprus.
Louis Group has also seventeen 4 – 5 star hotels, fourteen of which are situated in the Greek islands, twelve in Cyprus and one in Sharm El Sheikh, Egypt. The new luxury unit in Egypt will open in 2008. The Group’s hotels in Cyprus include the two Hilton hotels in Nicosia.
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