F.H.L. Η. ΚΥΡΙΑΚΙΔΗΣ Α.Β.Ε.Ε.
Announcement
We inform investors that on 9/04/2009 we transferred to Stone Works Holdings (co-owned by funds managed by NBGI Private Equity and Ethemba Capital) the 88.4% of shares in our FYROM subsidiary FHL MERMEREN KOMBINAT. The price of the transaction is ?23m of which ?19m was paid in cash and the remaining balance of euro 4m will be paid in 3 years.
It is noted that, as a result of the transaction, our total debt and liabilities are reduced at the level of the company by c. euro 19m and at the consolidated level by c. euro 32m (vs. 31/12/2008 financials).
At the same time, our company entered into an agreement for the exclusive international distribution and marketing of MERMREN's SIVEC marble.
It is anticipated that this cooperation will result in targeted annual sales of c. euro 20m on average for the next years, with a total annual benefit (gross profit and performance payments upon meeting agreed sales targets) of euro 7m respectively. In the context of this agreement, a contract has been signed with Chinese company BEST CHEER for the latters procurement of SIVEC marble for ?11m annually and the execution of the first euro 3m order is already being prepared. BEST CHEER is the largest vertically integrated marble company in Asia with an annual turnover of USD200m.
We are confident and expect that this cooperation with the new owners and strategic associates will result in additional synergies in the near future. The completion of the aforementioned transaction under the current very difficult global economic conditions underlines the fact that our company had and has in its possession significant portfolio values and also significant strategic advantages.
The company's management believes that during this difficult period for the international trading, associations with strong and reliable groups (institutional investors and strategic associates) constitute the most conducive and secure choice for the expansion of its activities in the marble area. On this basis, we will continue following our course to ensure the viability, the profitability and the growth of the company.
It is noted that, as a result of the transaction, our total debt and liabilities are reduced at the level of the company by c. euro 19m and at the consolidated level by c. euro 32m (vs. 31/12/2008 financials).
At the same time, our company entered into an agreement for the exclusive international distribution and marketing of MERMREN's SIVEC marble.
It is anticipated that this cooperation will result in targeted annual sales of c. euro 20m on average for the next years, with a total annual benefit (gross profit and performance payments upon meeting agreed sales targets) of euro 7m respectively. In the context of this agreement, a contract has been signed with Chinese company BEST CHEER for the latters procurement of SIVEC marble for ?11m annually and the execution of the first euro 3m order is already being prepared. BEST CHEER is the largest vertically integrated marble company in Asia with an annual turnover of USD200m.
We are confident and expect that this cooperation with the new owners and strategic associates will result in additional synergies in the near future. The completion of the aforementioned transaction under the current very difficult global economic conditions underlines the fact that our company had and has in its possession significant portfolio values and also significant strategic advantages.
The company's management believes that during this difficult period for the international trading, associations with strong and reliable groups (institutional investors and strategic associates) constitute the most conducive and secure choice for the expansion of its activities in the marble area. On this basis, we will continue following our course to ensure the viability, the profitability and the growth of the company.