- Readjustment of Net Asset Value (NAV) due to the deteriorating state and negative prospects of the Greek economy, which result in significant accounting losses.
- Company NAV stands at €2.463bn translating to a NAV per share of €3.24
- The Company maintains solid capital adequacy having a cash position of €570.4m at a time where mergers and acquisitions appear unavoidable.
For the First Half 2010, Marfin Investment Group (MIG) announced today losses after tax and minorities totaling €1.387bn out of which €1.161bn are accounting losses relating to the impairment test performed on our Company's assets due to the deteriorating state and the negative prospects of the Greek economy. Total losses from discontinued operations amounted to €254.6m out of which €132.6m is included in the amount of the impairment charges. Out of the remaining losses from discontinued operations, €80.3m will be recovered following completion of the merger between the Olympic Group of companies and Aegean Airlines. Excluding the impairment test and losses from discontinued operations, the Group recording losses after tax and minorities of €103.5m.
First half consolidated Group sales amounted to €735.5m vs. €583.5m in the same period of 2009 whereas first half gross profit reached €179.4m recording a small decline vs. the €190.8m recorded during the same period last year.
NAV stood at €2.463bn at the end of the first half, amounting to €3.24 per share. Post the readjustment in NAV, MIG's shares still trade at a significant discount of 70% of the NAV.
MIG continues to demonstrate a solid capital structure and strong liquidity. The Company maintains solid capital adequacy having a cash position of €570.4m at a time where mergers and acquisitions appear unavoidable.
The majority of our companies continue to hold number one or number two market positions in all of the sectors in which they operate, and are supported by strong balance sheets, strong cash resources, clear market-leading positions, and high quality, independently assessed assets of value, and are thus extremely well positioned to enjoy the maximum benefit of improving market conditions as the economy improves. MIG continues to further improve its operational strengths through restructurings, strengthening of management, international expansion and strategic actions in its group companies.
Commenting on the results, MIG's CEO Mr. Dennis Malamatinas made the following statement:
"The weak state of the Greek economy and its negative prospects, at least as these can be realistically assessed today, has resulted in the revision of the business plans and re-evaluation of a number of our Group's portfolio companies and have lead to significant accounting losses and the readjustment of our Net Asset Value. Nevertheless, the current level of €3.24 NAV per share does not justify the extremely low levels at which our share price is currently trading.
We consider that our strategy to emphasize in maintaining solid capital adequacy and strong liquidity, which currently stands at €570.4m, is correct not only defensively but also in order to enable us to participate from a position of strength in the impending restructuring in the Greek Business environment.
We believe that in a number of sectors where MIG operates mergers and acquisitions are becoming inevitable. The synergies that will be derived will enable companies to positively contribute in this challenging economic environment with a level of prices and services which will correspond to the diminished purchasing power of consumers.
In addition, we believe that the Greek Government in co-operation with the appropriate bodies of the EC and the IMF, will turn its focus, without further delay, to developing growth strategies, creating a business friendly environment and attracting new investments.
In the new environment that will emerge sooner or later, MIG, owning the leading companies in strategic sectors of the Greek economy, coupled with strong capital adequacy, meets all the conditions to reverse this period's losses and reward its long-term shareholders."
Contacts:
Investor Relations: +30 210 350 4000, +44 207 054 9280
About MIG: Marfin Investment Group Holdings S.A. is an international investment holding company based in Greece and throughout Southeastern Europe. The Company believes it is uniquely positioned to take advantage of an expanding array of investment opportunities in this region; opportunities in which traditional private equity funds and investment vehicles lacking MIG's regional focus, scale, expertise, and/or its investment flexibility and financial resources, may find difficult to identify and exploit. MIG is quoted on the Athens stock exchange and has a portfolio of leading companies in mainly defensive sectors across the SEE region, grouped into Food & Dairy, Transportation, Healthcare, Financial Institutions, IT/Telecoms, and Private Equity sectors. Included amongst its portfolio and subsidiary companies is Vivartia, a leading food and food retail business in the region; Attica Group, a leading passenger ferry operator; Olympic Air, Greece's national flag carrier; the Hygeia Group of hospitals, a leading private hospital group in Greece, Cyprus, Turkey, and Albania; Marfin Popular Bank; SingularLogic, the leading IT operator in Greece; and Robne Kuce Beograd, the largest chain of department stores in Serbia. As a truly diversified group, MIG has a global presence - with over 35% of its sales outside Greece, a presence in 40 countries, and more than 22 business segments overall. MIG employs over 56,000 employees and associates. The company has been listed on the Athens Stock Exchange since July 2007, when it raised €5.2bn in the largest rights issue by an investment company in global history at the time.