The Board of Directors of NEOCHIMIKI S.A. announces that on 11.02.2007 it it decided to convene in the immediate forthcoming period of time a General Meeting to decide on the issuing of a convertible bond loan, where old shareholders will resign from their right to participate and which will be privately placed in institutional investors.
The exact terms of the proposed bond loan will be put to the shareholders'' judgement at their General Meeting, after the assessment of relative international issues.
Moreover, the Board of Directors of the company after taking into consideration:
a) LAMDA DETERGENT''s announcement regarding its intention to proceed to a merger with other companies with the aim of establishing a unified company, which will be henceforth active in sectors that are different from its current operations,
b) the announced share exchange ratio proposal with regard to the aforementioned merger, according to which its participation in the unified company Alapis will amount to 12.7% with a result among others not being able to be consolidated, has decided to proceed within the current year to the total liquidation of its participation in that company if this is possible and benefits the shareholders of the company.
The proceeds from the above actions will be used a) for the refinancing of current bank loans and b) for further expansion of its activities in the Southeastern Europe.
In 2006 Neochimiki Group proceeded to the acquisition and operation of 5 new chemical production plants, 4 of which are located in Greece and 1 abroad, and the acquisition of 2 new logistic centers for chemical products and one chemical terminal (INTERCHEM) in Avlida.
Finally, the company in the year 2006 posted an increase in consolidated turnover of 112% over 2005; consolidated turnover in 2006 stood at euro 301,8 mil. over euro 142.5 mil. in 2005. Consolidated profits before interest, taxes and depreciation stood at euro 61.6 mil. over euro 27.5 mil. in 2005 marking an increase of 124%. Profits after taxes and minority rights amounted to euro 97.1 mil. over euro 12.6 mil., marking an increase of 669%. Profits after taxes and minority rights include extraordinary capital gains of euro 73.9 mil. from the sale of the shares of the subsidiary company Lamda Detergent to foreign institutional investors, excluding which the organic net profits after taxes and minority rights stand at euro 23.1 mil. over euro 12.6 mil. in 2005, marking an increase of 83%.