The sale price has been set at € 26,5 million and is expected to result in a net profit after tax of approximately € 1,8 million. The sale and transfer of assets is expected to be completed within the second quarter of 2016, following relevant approvals by the competent supervisory authorities.
The sale is part of the Group's strategy to leverage through the disposal of non-core activities and to focus on core activities, while improving its capital position.
The transaction is expected to result in a net return on equity of approximately € 18 million and an improvement in the Class 1 Common Equity Capital Index by 0,1 percentage points.
Kermia Ltd, a wholly owned subsidiary of the Bank, has entered into an agreement for the sale of 100% of its stake in Kermia Hotels Ltd together with adjacent land (including "Assets"), in the Ayia Napa area of Cyprus, at Aesara Investment Ltd, which was selected through a bidding process. Aesara Investment Ltd. is controlled by Vassilis Nikolaidis and Dimitris Nikolaidis, shareholders of Atlantica Leisure Group Ltd.
Kermia Hotels Ltd owns and operates the Kermia Beach Bungalow Hotel, located on the outskirts of Ayia Napa, Cyprus.
The sale price is set at € 26,5 million. The transaction is expected to result in a net profit after tax of approximately € 1,8 million for the Group, based on the carrying amount at 31 December 2015, and a net return on equity. amounting to approximately € 18 million as a result of the existing capital management of the Assets. As a result, the Group 1 Category Common Equity Capital Index is expected to improve by 0,1 percentage points.
As required by the Cyprus Stock Exchange and in accordance with paragraph 5.2.1.17 (7) of the Regulatory Decisions of the Cyprus Stock Exchange Council Regarding the Markets Purchases of KDP 379/2014 (as amended), this transaction was carried out at market prices (arm's length) and does not concern or affect the interests of the Secretary of the Bank or any "designated person" as defined in Article 137 (3) of the Cyprus Securities and Exchange Law 14 (I) / 1993 (as amended).
Source: Liberal