A strategic partnership agreement between E.Y.A.Th. S.A. and E. MALAMATINAS Industrial and Commercial S.A. on the production of table bottled water was signed on Monday 19-05-2008, following resolution of the Board of Directors of E.Y.A.Th. S.A. What is more, this was preceded by the signing of a Confidentiality Agreement (NDA) on 19-03-2008 and of a Memorandum of Understanding (MoU) on 08-04-2008.
The framework agreement in principle bears on a joint investment in the construction of a table water bottling plant. In particular, a joint company is expected to be established of which E.Y.A.Th. S.A. shall be the principal shareholder owning 55% and it shall appoint four members of the Board of Directors, the chairman among others, whereas E. MALAMATINAS Industrial and Commercial S.A. shall own 45% and shall appoint three members of the Board of Directors, the Managing Director among others. It is expected that the amount of investment will come approximately to euro 8 million, while the turnover is estimated to amount approximately to euro 5 million per annum.
In the context of the agreement in principle, the business plan and the financial indicators that should be achieved shall always require the approval of E.Y.A.Th. S.A. This agreement is going to be followed by the conclusion of two specific contracts: (a) a shareholders' agreement and (b) an exclusive supply agreement whereby E. MALAMATINAS Industrial and Commercial S.A. shall undertake to supply the manufactured products.
It should be noted that the agreement in question shall be submitted for approval to the Ordinary General Assembly of E.Y.A.Th. S.A., scheduled to convene on 27-06-2008