MIG HOLDINGS S.A.
Exercise of call option to increase its participation in the share capital of "FLIGHT AMBULANCE INTERNATIONAL RENT - A- JET AKTIENGESELLSCHAFT" (FAI)
"MARFIN INVESTMENT GROUP HOLDINGS S.A" ("MIG" or the "Company") announces that it has exercised its call option to acquire majority control and increase its participation in the share capital of FAI to 51% from 49.9% previously. The purchase price for the additional stake in the company amounts to €2,500,000, as already announced on 1.12.2008, along with the initial agreement regarding the Company's investment in FAI. Completion of the transaction is expected within the next few days.
Despite the current adverse economic environment, FAI has demonstrated impressive growth over the last two years. Total revenue for 2009 reached €38.6m, up 45.7% from €26.5m in 2008 and from €21.9m in 2007, for a 2-year CAGR of 32.7%. Profitability also followed a similar pattern: EBITDA for 2009 was €8.74m versus €6.81m in 2008 and €5.46m in 2007, implying a 2-year CAGR of 26.5%. Finally, Earnings before Taxes reached €4.86m for 2009, 34.2% higher than in 2008.
At the same time, FAI has capitalised on the prevailing economic conditions by expanding its aircraft fleet at particularly attractive valuations. The fleet size increased from 6 aircraft at the end of 2007, to 9 at the end of 2008 and reached 20 by April 2010. 17 out of these aircraft are made by Bombardier, complemented by 1 Falcon, 1 Legacy and 1 Citation.
FAI's admittedly excellent financial performance, makes MIG's agreement to purchase a stake in the company 18 months ago, particularly profitable for MIG's shareholders. According to current financial results, the acquisition of the 51% participation in FAI, including the exercise of the option, implies a transaction multiple of 4.77x 2009 EBITDA.
Despite the current adverse economic environment, FAI has demonstrated impressive growth over the last two years. Total revenue for 2009 reached €38.6m, up 45.7% from €26.5m in 2008 and from €21.9m in 2007, for a 2-year CAGR of 32.7%. Profitability also followed a similar pattern: EBITDA for 2009 was €8.74m versus €6.81m in 2008 and €5.46m in 2007, implying a 2-year CAGR of 26.5%. Finally, Earnings before Taxes reached €4.86m for 2009, 34.2% higher than in 2008.
At the same time, FAI has capitalised on the prevailing economic conditions by expanding its aircraft fleet at particularly attractive valuations. The fleet size increased from 6 aircraft at the end of 2007, to 9 at the end of 2008 and reached 20 by April 2010. 17 out of these aircraft are made by Bombardier, complemented by 1 Falcon, 1 Legacy and 1 Citation.
FAI's admittedly excellent financial performance, makes MIG's agreement to purchase a stake in the company 18 months ago, particularly profitable for MIG's shareholders. According to current financial results, the acquisition of the 51% participation in FAI, including the exercise of the option, implies a transaction multiple of 4.77x 2009 EBITDA.