The management of "ELECTRONIKI ATHINON ANONYMOUS COMMERCIAL COMPANY S.A." (hereafter the "Company") announces that today, 11th of April 2007, concluded a pre-agreement with the shareholders of "SARAFIDIS COMMERCIAL ELECTRICAL APPLIANCES S.A." (hereafter "SARAFIDIS S.A.") to acquire 100% of the shares of SARAFIDIS S.A. More specifically, two (2) pre-agreements were signed between the Company, and 1) "Bank of Piraeus SA", legally represented for the acquisition of 35% of the shares of SARAFIDIS S.A. and 2): a) George Sarafidis of Ioannis, resident of Panorama Thessalonica, 12 Kofidou Str., b) Ariadni Sarafidis widow of Ioannis, resident of Thessalonica, 4 Pl. Aristotelous Str., c) Konstantinos Papadopoulos of Eystathiou, resident of Thessalonica, 41 Dioikitiriou Str., d) Evangelos Tavatidis of Georgiou, resident of Thessalonica, 24 Heimonidou Str., e) Ioannis Sarafidis of Georgiou, resident of Panorama Thessalonica, 12 Kofidou Str. f) Konstantinos Sarafidis of Georgiou, resident of Panorama Thessalonica, 12 Kofidou Str. and g) Eytychia Papadopoulou of Ioannis, resident of Thessalonica, 5 Dim. Gounari Str., for the acquisition of 16% of the shares of SARAFIDIS SA and, at a second stage, (within three years) for the acquisition of the remaining 49% of the shares of SARAFIDIS SA from the shareholders stated in 2 above.
The acquisition of SARAFIDIS S.A. by the Company enlarges even further its rapidly increasing market share, more specifically in Northern Greece, where the retail networks of the two companies are complementary to a large extent.
SARAFIDIS S.A. enjoys high brand recognition in Northern Greece where is active with nine retail outlets, including one megastore. Currently, SARAFIDIS S.A. is the 4th largest electrical retail chain in Greece with an overall estimated market share of between 2.5% - 3%. In accordance with the pro-forma financial statements prepared under Greek GAAP for the year ended 31st December 2006, SARAFIDIS S.A. total turnover amounted to euro 38.6 million while earnings after taxes were euro 294,000. For the same period, earnings before interest, tax, depreciation and amortization and before exceptional items (EBITDA excluding exceptionals) amounted to euro 1.412.
Following the completion of the acquisition, the management of the Company aims to further penetrate the market of N. Greece through the expansion of SARAFIDIS S.A. network. Furthermore, it is expected that such integration will create synergies and economies of scale. In this light, and according to the estimates and forecasts as they stand today, it is in the Company''s immediate plans to retain a) the SARAFIDIS brand and b) Messrs. George Sarafidis and Evangelos Tavatidis in the management of SARAFIDIS S.A.
The acquisition is expected to have a positive impact both on the turnover and the profitability of the Company from the first year of integration, without affecting the Company''s dividend policy.
The acquisition of SARAFIDIS S.A. shares will be financed through own funds. The consideration is lower than 30% of the company''s shareholders funds.
The acquisition of SARAFIDIS S.A. shares by the Company is subject to the approval of the Competition Committee.