Carrefour Marinopoulos buys Chris Cash & Carry

Carrefour Marinopoulos announced that they have reached a deal to acquire the 100% of the share capital of Chris Cash & Carry (CHR) at a total price of CYP 21.6 mln.

Carrefour Marinopoulos said they will form a new company in Cyprus, which will take over 100% of the capital of the CSE Chris Cash & Carry. The new company will then proceed with a public tender offer, seeking to acquire all the share capital of CHR at the price of 32 cent per share, which is at a 50% premium compared to the 21 cent price prevailing on Thursday, before the deal was announced.

The deal price is also at a 50% premium compared to the book value of CHR, which according to Financial Mirror estimates and based on the latest audited results, was 22 cent per share for a price to book value of 1.01 times.

The 32 cent price, based on the 67.62 mln outstanding shares gives CHR a valuation of CYP 21.6 mln. The Chairman of CHR, Andreas Andreou who is also the largest single shareholder will tender all his shares, but will control 49.9% of the new company, in which Carrefour Marinopoulos will hold 50.1% stake.

After the takeover is completed Carrefour Marinopoulos will assume day-to-day management of the firm and delist the company from the CSE.

Chris Cash & Carry is the second largest retailer in Cyprus (behind Orphanides) with an annual turnover of CYP 55 mln. The company reported net profits of CYP 1.3 mln for 2004, CYP 1.2 mln in 2003 and CYP 967.000 in 2002.

The company has three Hypermarkets and three Supermarkets in Cyprus and is on track to open its fourth supermarket in July 2005. Carrefour Marinopoulos is Greece’s largest retailer with annual turnover of EUR 2.04 bln and 597 retail outlets.