Christis shares soar on Delta bid talk

Christis Dairies Pcl shares soared double limit-up or 32% on Friday to 18.2 cent per share on the CSE following reports that Delta S.A. of Greece is seeking to buy Christis from the Shacolas Group and CTC and submit a public offer for the whole of the company.

Delta, which has a 54.9% stake in Cyprus’ third largest dairies company, Charalambides Dairies is reported by the Greek press to be the group “from the EU” which is negotiating with NK Shacolas and Cyprus Trading Corp. Pcl for their majority share in Christis.

Late Thursday, NK Shacolas and Cyprus Trading Corp. Pcl announced that they are at advanced stage of negotiations to sell their stake in Christis Dairies Pcl to a company based in the EU for cash, at a price significantly higher than its current price traded on the CSE.

Following the sharp rally in the share price of Christis, the market capitalisation of the company surged to CYP 10 mln from CYP 6 mln prior to the announcement of the deal according to Financial Mirror calculations.

Based on the 28 cent book value, Christis would be valued at CYP 15 mln.

“The sale of the stake, after the final negotiations are hammered out, will be through a public tender offer for the whole capital of Christis, provided that the relevant authorities of the Republic of Cyprus approve the deal,” an official announcement by NK Shacolas filed with the CSE said.

Shareholders of Christis are urged to have patience until the whole deal is wrapped up in the next few weeks, which may not be concluded, the NK Shacolas announcement cautioned.

Christis has a total issued share capital of 54.7 mln shares of 25 cent each with a book value estimated at around 28 cent per share according to its most recent accounts.

The Shacolas Group of Companies and the CTC Group hold a 45.81% controlling stake in Christis, or 25.092.159 shares.

Christis has had a mediocre performance. After reporting net profit of CYP 432.000 in 2003, the company reported CYP 761.000 net loss for 2004, while in 2005 it reported CYP 106.000 in net profit.