Aristo & Leptos
Aristo Developers Plc - Suspension of trading on Cyprus Stock Exchange
The Cyprus Stock Exchange announces the suspension of trading of the titles of Aristo Developers Plc for today, Thursday, December 14, 2006 following the Company’s request in the frames of a potential Public Offer from third parties.
Rumours are circulating that ‘allegedly’ Leptos have bought out Aristo via a French company.
Leptos in talks to buy out Aristo
By Leo Leonidou
Copyright © Cyprus Mail 2006
TWO OF the island’s biggest developers are in negotiations over a possible takeover.
According to press reports, the Leptos Group, backed by an unnamed French company, is to buy out Aristo Developers.
Earlier this week, Aristo secured from the Cyprus Stock Exchange a second day of suspension of its shares pending the outcome of intense negotiations aimed at finalising the takeover bid now in progress on the group.
According to the Financial Mirror, the bid is for 100 per cent of the company and has to be all-out cash.
The Aristodimou family controls a little over 50 per cent of the CSE-listed Aristo, with the Elma Group controlling another 25 per cent. The remaining 25 per cent is spread among the public.
The price at which negotiations are being held is reported to be between 90 and 100 cents per share, with the buyer reportedly backed by a Cypriot bank, which in turn is acting on behalf of a foreign financial institution willing to provide a bank guarantee.
Local press reports have put the total figure somewhere in the region of £300 million.
Aristo own £200 million worth of properties and are reported to have secured permits for the development of three golf courses.
A spokesman for Leptos yesterday told the Mail that he couldn’t make any official comment but did add that, “should these reports turn out to be true, it will be beneficial to the whole island as a large part of the property market will remain in Cypriot hands.”
Traditionally, the two companies have been the major players in the Paphos area with any possible takeover likely to leave competitors trailing in their wake.
Aristo sale negotiations collapse
Aristo Developers Pcl (ARD) announced that negotiations for the sale of the company ended unsuccessfully and there was no agreement signed. Last week, Artisto had secured from the CSE suspension of its shares for two days pending the outcome of intense negotiations aimed at finalizing the takeover bid, which later on was revealed to be with Pandora Invesments, owned by the Leptos Group.
Informed sourced told the Financial Mirror that the bid was for 100% of the company and it had to be all-out cash, which if agreed, will be backed by the majority shareholders controlling 75% of the capital.
The Aristodimou family controls just above 50% of the CSE listed Aristo Developers and the Elma Group controls another 25%. The remaining 25% is spread among the public.
The price at which negotiations were being held was reported to be around 90c to 100c or EUR 1.55 to EUR 1.73 per share, with the buyer reportedly backed by a Cypriot bank, which in turn is acting on behalf of a foreign financial institution willing to provide a bank guarantee.
Aristo has a total of 128.27 mln shares in circulation and prior to the suspension of trading on its shares, had a market cap of EUR 169 mln.
In 2005, ARD reported EUR 18.8 mln in profits while for the first half of 2006, the reported profits were EUR 11 mln. Assuming EUR 20 mln in forecasted profit for 2006 and based on a p/e ratio of 15 times earnings, the company is worth at least EUR 300 mln or EUR 2.33 per share.
Aristo Developers also owns CYP 200 mln of properties and is reported to have secured permits for the development of three golf courses.
Aristo Developers: Leptos had unsuccessful negotiations
The negotiations between Aristo Developers and Leptos Developers on the acquisition of up to 100% of the share capital of Aristo by the latter were unsuccessful.
Pandora Investments, which carried out the negotiations, announced today that the deliberations on the submission of a Public Offer did not end up with an agreement. “Within the framework of the enforcement of its strategic plan, taking advantage of its strong balance sheet and its wide know-how in the sector of property, the Company observes the opportunities for further development, having as a main criterion the constant strengthening of its share value”, the announcement added.
Chairman of Aristo Developers, Theodoros Aristodemou told StockWatch that the Board of Directors examined all the parameters of the proposal and decided unanimously that autonomous course will be to the benefit of the Company’s shareholders, the staff and the customers.
According to sources, the price of acquisition had been set at £300 million cash.
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