Delta lifts stake in Charalambides

Delta Vivartia has purchased a further 20.12% stake in Charalambides Dairies at a cost of EUR 10.8 mln, lifting its stake to 74.9% according to an official announcement with the ATHEX.

Delta purchased the additional stake from Emporiki Bank. According to Financial Mirror records, Delta initially bought its controlling stake in Charalambides Dairies in June 2002 at an estimated cost of CYP 17.2 mln or EUR 29.8 mln, though the final figure was never revealed officially.

Delta said that its EPS for 2006 will not be affected by the move while for 2007, it sees a EUR 0.02 gain. Charalambides is one of the three major dairy and milk producers of Cyprus and since 2002 has been distributing Delta products in Cyprus.

It remains to be seen if the move is related to a previous deal according to which Delta had announced that it had signed a letter of intent with Cyprus Trading Corporation for the purchase of a 45.8% controlling stake in Christis Dairies at 30cor 52 euro cent per share in a deal worth CYP 7.5 mln or EUR 13.05 mln. The deal however may need to secure approval from the Competition Commission, which may bring objections since if Delta is allowed to purchase Christis, then it will assume a dominant position in the market.