CTC sells 28.3 mln of Ermes shares

Cyprus Trading Corporation Pcl (CTC) announced that the Ermes Department Stores Public Ltd public offer was successfully completed as the acceptance rate of the Public Offer reached 34.3%.

The public offer concerned the offering of 82.4 mln shares to FWW shareholders at the price of 24 cent each. CTC said that 28.3 mln were sold to investors of which 5.25 mln were sold to Woolworth Properties, which meant FWW increased its stake in Ermes from 7% to 10%.

The remaining 54.1 mln Ermes shares will be kept by CTC.

According to the announcement, there is a possibility that in the future FWW would dispose part of its participation in Ermes share capital at a higher price than the public offer price.

The major shareholders in Ermes Department Stores after the completion of the public offer are as follows: CTC Pcl 66.9%, FWW Pcl 10.0%, Debenhams Retail plc 10.0% and

private and institutional investors 13.1%.

A dividend payment of 1.6 cent per share to all Ermes shareholders is expected to be paid in November 2006, while all shareholders of Ermes will be eligible to participate in the free warrant issue in the ratio of 1:5 with an exercise price of 40 cent until November 2011. Ermes is now expected to file an application to list in the Main Market of the CSE.

Ermes also reported that its turnover until October 16 was up 10.9% at CYP 72.8 mln compared to its forecasted turnover growth for the whole year of 6% to CYP 95.04 mln and CYP 89.68 mln in 2005.

Ermes has also forecast that its net profit after tax will climb by 110.7% to CYP 5.2 mln compared to 2.468.000 reported for 2005.