Business developments in ELGEKA Group – Redefining its strategy and its business focus
Thessaloniki, March 30th, 2016
Under the provisions of L. 3340/10-05-2005, Board’s Decision 3/347/12-07-2005 of Hellenic Capital Market Commission and Regulation of Athens Stock Exchange Market, “ELGEKA S.A.” informs the investing public and its shareholders the following:
“ELGEKA S.A.”, one of the largest Greek commercial companies with presence in logistics services and in the food industry since 1974, announces the implementation of its new strategic plan. This is an important moment in its history, in which the company takes the initiative, prioritizes its urgencies from the beginning and redefines its business focus, in order to lay the foundations for a growth path.
Company’s main thrust and key objective of the new strategy is for ELGEKA to remain an integral link in the supply chain and with this vision will continue to upgrade the level of the commercial services it provides to its customers and guarantee the quality of products that reach the final consumers.
Specifically, under the new strategic plan in the near future, the Group will focus its attention on three main axes:
In the food sector, through the activity that traditionally developed by ELGEKA
In traditional logistics in Greece through DIAKINISIS
In strengthening its extroversion and footprint to niche markets, through subsidiaries with strong export activity, such as VIOTROS
In this context, ELGEKA proceeds in a series of initiatives in comply with its strategy, which includes also the implementation of the decision to sell its stake in “DIAKINISIS PORT (CY) LTD”. The specific company, in recent years has had a successful course of business under the support and expertise of ELGEKA.
Consequently, today March 30th, 2016, after taking the relevant decisions by the Management of both the Parent company “ELGEKA S.A.” and its subsidiary “ELGEKA (CYPRUS) LTD” (with a shareholding percentage 100%), and signing the relevant contract, concluded the sale of its participation of “ELGEKA (CYPRUS) LTD” in “DIAKINISIS PORT (CY) LTD”, i.e. a percentage of 50,01% for a consideration of 1.059 thousand euro, which was completely paid the same as above date.
It is noted that the company “DIAKINISIS PORT (CY) LIMITED”, which is headquartered in Nicosia, Cyprus with object of activity the participation in other companies, participated in the Greek companies “DIAKINISIS PORT AND CO S.A.” and “P.C.D.C. S.A.” with 99% and 50% respectively, and therefore consolidated in the Group’s financial statements with the full method (with a percentage of 49,51%) and the equity method (with a percentage of 25,01%) respectively. It is also noted that taking into account the decisions, by December 30th, 2015, taken by Management of both the Parent company “ELGEKA S.A.” and its subsidiary “ELGEKA (CYPRUS) LTD”, regarding the intention of finding potential acquirer for the sale of subsidiary “DIAKINISIS PORT (CY) LTD”, the specific company and by extension its subsidiaries “DIAKINISIS PORT AND CO S.A.” and “P.C.D.C. S.A.” will appear in the forthcoming ELGEKA Group’s Annual Financial Statements of 31/12/2015, but also then, as “Discontinued operations” and “Non-current assets held for sale”.
Based on the latest available data of the company “DIAKINISIS PORT (CY) LTD”, including holdings of companies “DIAKINISIS PORT AND CO S.A.” and “P.C.D.C. S.A.” on December 31, 2015, their fundamentals were as follows: Turnover amount of 30.182 thousand euro, “Loss before tax” amount of 1.152 thousand euro, “Loss after tax” amount of 1.194 thousand euro and “Losses before interest, taxes, depreciation and amortization – EBITDA” amount 1.283 thousand euro.
Finally, it is noted that the above transfer of the participation of “ELGEKA (CYPRUS) LTD” in “DIAKINISIS PORT (CY) LTD”, is estimated to produce profit of approximately 400 thousand euro in the ELGEKA Group’s Consolidated Financial Statements on March 31st , 2016.
