Further to its previous announcement, C.C.C. Tourist Enterprises Public Company Ltd, “The Company”, announces that it has reached an agreement with Emerald Coast Properties Ltd, “The Investor”, according to which the Company’s subsidiary, L’ Union Nationale (Tourism and Sea Resorts) Ltd, will issue at par 20.000.000 (twenty million) shares of a new class, with a nominal value of €1 each, to be subscribed by the Investor, with the Company waiving its pre-emption rights. After the issue of the said shares, the Company and the Investor will each have a 50% share in L’ Union Nationale (Tourism and Sea Resorts) Ltd.
The conclusion of the transaction, which is subject to the due diligence report, the scope of which is to verify certain parameters and representations, will be not later than the 31st of January 2014, will be effected with the issue and allotment of shares to the Investor and the payment of the Subscription Price of €20 million to L’ Union Nationale (Tourism and Sea Resorts) Ltd. Post conclusion, L’ Union Nationale (Tourism and Sea Resorts) Ltd board of Directors will be comprised of 3 Directors indicated by the Company and 3 by the Investor.
The raised funds will be primarily used for the renovation of Le Meridien Limassol Spa & Resort, as well as for the strengthening of its working capital. The Company’s Board of Directors considers the conclusion of the deal a very important achievement, since without burdening of its gearing the Resort will be further upgraded thus making it competitive to the upscale market of the region, opening up the prospect for the considerable improvement of its financial results to the benefit of the Company’s shareholders. Equally important, in light of the unprecedented difficulties faced by Cyprus’ banking sector, is the improvement of its liquidity.
Lastly, the Board of Directors strongly believes that the trust and commitment shown by the Investor to the Company and the Resort’s potential will reflect positively on the Island’s economy as a whole at a time when the country is in much need of a confidence boost of such significance.
The Company will keep the investing public up-to-date with any developments.
C.C.C. Secretarial Ltd
Limassol, 23rd October 2013