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Amara Hotel will not join Cyprus Stock Exchange

March 13, 2019 at 7:42am
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Stademos Hotels is the latest addition to the long list of companies whose major shareholders buy out minor ones and delist. The Limassol-based company is the owner and manager of Elysium hotel in Paphos and the Mediterranean in Limassol and is in the final stages of completing the construction of Amara – a new five-star hotel in the eastern part of Limassol.

The aim is for the new hotel to operate before the summer period, but the owner company may not be listed by then. According to an announcement, Stademos Holdings Ltd have started the process for a mandatory takeover bid directed towards all shareholders of Stademos Hotels Ltd in order to acquire up to 100% of the issued share capital.

Up until March 7, Stademos Holdings directly held 19,148,372 ordinary shares of Stademos Hotels with a nominal value of €0.68 each, representing 49.10% of the total issued share capital. On March 8, Holdings announced that they had purchased a total of 8,244,312 additional ordinary shares of the Company at a price of €1.50 per share from Stavros Demosthenous, Anna Demosthenous, Demos Demosthenous and Zoi Demosthenous which correspond to 21.14% of the issued share capital.

As a result, the company proceeded with a mandatory takeover bid directed towards all shareholders of Stademos Hotels for the acquisition of up to 100% of the issued share capital. The consideration for the acquisition of Stademos Hotels titles is €1.50 per share, payable in cash, to all shareholders who will accept the Public Offer.

Up until June 30, 2018, the company’s turnover amounted to €13.1 million compared to €12.1 million the same period last year, while for the whole of 2017 the company had a turnover of €32 million and a profit of €6.4 million. At the last General Meeting of the company last September, the decision taken was for a dividend of 0.04 cents per share to be paid.

Stademos is an addition to a list of the sector’s hotels that their major shareholders bought out minor ones in recent years. Other hotel companies that have exited the floor in recent years were Aqua Sol (2010) and Kanika Hotels (2012). With the exit of Stademos, the hotels of Constantinou Bros, Leptos Calypso Hotels, Lordos Hotels, Tsokkos Hotels, Louis and Agros Development Company are the ones still listed on the CSE.

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CSE sees a mass exodus of listed companies