GREEK dairy group, Delta Holdings, yesterday said it has reached a preliminary agreement to buy 45.8 per cent of Christies Dairies for 30 cents per share from the Shacolas group.
Delta said the non-binding deal, based on a letter of intent, is subject to due diligence and permission from regulatory authorities.
Delta Holdings already has a 55 per cent stake in Charalambides Dairies, the largest player in Cypriot dairy products.
A financial and legal audit will take place before any possible final agreement. Such agreement will be conditional on securing the required administrative permits.
“In case the deal is finalised, there will be a tender offer for all of Christies Dairies shares as per Cypriot law,” Delta said.
Delta will buy the Christies shares from Cyprus’ Shacolas Group and the Cyprus Trading Corporation.
Earlier this month, Shacolas had said it was in talks to sell its stake in Christies to a company based in the European Union for an undisclosed amount.
Delta will change its corporate name to Delta Symmetochon (Vivartia) after it completes its merger with Greek snacks maker Chipita.
On a related move, Woolworth (Cyprus) Properties Plc, a member of the Shacolas Group of Companies, announced that it has a signed a deal under which it will allow use of space at its ‘Mall of Cyprus’ in the Shacolas Emporium Park and in Engomi Market for the operation of Carrefour supermarkets.
The agreements were signed in Athens on July 21, 2006 by Woolworth subsidiaries, ITTL Trade Tourist and Leisure Park Ltd and Woolworth Commercial Center Ltd, and on the other side by Chris Cash and Carry Ltd, a member of Group Carrefour, the commitments of which were guaranteed by Carrefour – Marrinopoulos S.A. Greece.
For the use of the facilities, Carrefour will pay a guaranteed amount on an annual basis that is tied to the turnover of the group. Based on the agreed deal, Carrefour will pay six million euros to Woolworth (Cyprus) Properties for the use of the facilities. The first lot of two million euros has been paid, while the remaining balances will be settled in four annual instalments of one million euros each.
For other alterations to the facilities, an additional amount will be paid to Woolworth.
The Shacolas Group clarified that the above agreements do not include any share sale or swap or sale of property. The Group clarified that the Shacolas Emporium Park will also house the soon-to-open IKEA store, which will also provide a guaranteed annual income and participation in revenue.
The Group noted that the above transactions will have a significant positive impact on the results and prospects of Woolworth (Cyprus) Properties and Ermes [Debenhams] Department Stores Public Ltd, as well as on Cyprus Trading Corporation Public Ltd, which is the largest shareholder in both companies.
