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Retail traders in Cyprus concerned over Creta Farms developments

July 30, 2019 at 7:00am
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Retail traders in Cyprus are concerned over recent Creta Farms developments now that the Greek food company is in the process of finding a strategic investor to safeguard its smooth operation.

Afterall, Creta Farms cold meat products are also distributed in Cyprus and some of them hold a significant market share.

Last week, Creta Farms’ major shareholders signed a memorandum of understanding between the company and four Greek systemic banks in order to proceed with finding a strategic investor and safeguard the smooth operation of the company.

The MoU signals the start of a process to find a strategic investor, places a CRO/Monitoring Trustee in the company and the banks pledge to activate any credit limits and factoring deals.

Ιn the meantime, the company’s annual report for 2018 shows that sales in the Cyprus market amounted to €1.7 million, compared to €1.3 million the year before.

The report also noted that, as regards foreign investment, the Group has readjusted its strategy. And that it has proceeded with the reorganization of its operations also in Cyprus.

Greek media also reported that one of the terms of the memorandum signed between the Domazaki brothers, the major shareholders, and the banks is to transfer the trademarks and patents currently owned by Novaplot, a company registered in Cyprus, to Creta Farms.

In addition, EY audit firm has undertaken to find investors interested in the company by next October. Insiders said there are Cypriot investors eyeing the food company.

Greek Development and Investments Minister Adonis Georgiades played a key role in the successful negotiations between the banks and Creta Farms shareholders.

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