Following today’s announcement regarding the sale of the shares held by the Company in its associated companies, Latomio Pyrgon Ltd and Latomia Latouros Ltd, the following additional information is provided:
The Company’s investment in the shares of Latomio Pyrgon Ltd took place in 2001, with the acquisition of 30% of the company’s share capital from Joannou & Paraskevaides Ltd.
The Company’s investment in Latomia Latouros Ltd indirectly took effect through the merger with The Cyprus Cement Public Company Ltd where the Company acquired several assets and its cement operations in 2018.
The agreement for the transaction was concluded on an arm’s length basis. The total consideration for the sale, which amounts to €4.150.000, will be paid in cash upon the full implementation of the agreement, by 31/5/2019. The transaction will result to a pre-tax profit of €787.000, which will be recognized in the consolidated statement of profit or loss of the Company’s consolidated financial statements for the year 2019.
The liquidation of these investments is not expected to affect the prospects or results of the Company. The share of the profit from these two companies, which was included in the consolidated financial results for 2018, was €305.000 (2017: €238.000). Additional financial information for these associated companies (equity accounted investees), is included on note 19 (pages 72-73) of the Consolidated Financial Statements for the year 2018, published on 12/4/2019.
The transaction is not related, neither does affect the interests of any Board Member, the Secretary and the designated persons according to article 137(3) of the Securities and Cyprus Stock Exchange Law.