Following the completion of the due diligence process, as per the press release of 6 March 2008, Marfin Investment Group Holdings S.A. ("MIG") announces the acquisition of approximately 49.99% of the equity capital of Sunce Koncern d.d. ("Sunce" or the "Company") from the Company's main shareholders for a consideration of 90 euro million (the "Transaction"). As part of the Transaction, MIG has retained a 2-year option to potentially increase its participation to 75% of the Company?s share capital for an additional consideration of 45 million euro.
Sunce is one of the largest Croatian groups in the tourism and leisure sectors. Through its subsidiaries, Sunce owns and operates 11 hotels situated under the Blue Sun Hotels & Resorts brand in prime locations of Makarska Rivjiera, one of the most attractive tourist destinations on the Adriatic coast, as well as on the island of Brac. Key highlights of the hotels:
- a total of 2,247 rooms and 4,510 beds
- account for 4.6% of total overnights in Croatian hotels for 2007
- conference facilities with more than 800 seats
- 26 tennis courts
- 3 wellness / SPA centres
Over and above the hotels, Sunce owns a number of other very attractive assets:
- a majority stake in the airport of Brac Island
- over 300,000 m2 of agricultural land plus an additional 2.6 million m2 of such land through a 40-year concession on the island of Brac
- a 91% stake in the Public to Private Partnership with the County of Krapina and Zagorje for the development of a large healthcare tourism complex in the outskirts of Zagreb, with 2 hospitals, 3 hotels and a total of 1,180 beds plus a whole array of wellness, recreational and business facilities
Sunce is a clear and recognised leader in Croatia's rapidly growing tourism industry, both through the strong positioning of the Blue Sun Hotels, but also through the prospects of the numerous projects that the Company plans to undertake in the near future in the tourism, leisure and other adjacent sectors.
The President of the Management Board of Sunce Mr. Jako Andabak commented on the completion of the Transaction:
"We are very happy to welcome MIG to Sunce and to Croatia. The years ahead of us will be very exciting for Sunce, as we plan to further solidify the positioning of our hotel brand, as well as pursue some very promising projects that will underline Sunce's status as the protagonist in the Croatian tourism and leisure industry. We are thrilled to have the largest strategic investor in the Southeastern European region on our side. My family and I are confident that with our dedication to quality, customer service and under my management, combined with MIG's financial and strategic capabilities, we will be able to achieve our common vision for Sunce. Finally, we see this transaction as the beginning of a very fruitful and long partnership."
The Executive Vice-Chairman of MIG Mr. Andreas Vgenopoulos stated:
"We are delighted to complete our first investment in Croatia, a country with excellent growth prospects and a promising tourism sector. This transaction undoubtedly meets our investment criteria and also overlaps with one of MIG?s stated key sectors, Healthcare.
We also feel very fortunate to have found a partner of the entrepreneurial calibre, strategic vision and professional integrity of Jako Andabak. The past few months have convinced us that Sunce will continue to prosper under his management and we look forward to pursuing more investments in Croatia, together with Mr Andabak and his family."