A. Panayides acquires subsidiary of Kythreotis

A. Panayides Contracting Public Ltd (APC) announced that on June 21, 2007 its subsidiary, “Pharmakas Quarries Ltd” signed an agreement via its subsidiary “Chenega Holdings Ltd” (in which it holds 81% via the subsidiary Powermix Ltd) with K. Kythreotis Concrete Ltd for the acquisition of a ready-made concrete unit in Nicosia.
The business is actively involved in the sector of construction and sale of ready-made concrete and has a factory and other buildings in Pano Deftera, Nicosia. The Company’s sales in the past 3 years stood at around CYP1,800,000 (EUR3,083,776).
The total acquisition price has been agreed at CYP1,313,298 (EUR2,249,942), which includes the Company’s equipment, goodwill, fees and liabilities concerning the staff, as well as the property of 18 decares and 275 sq. meters in Pano Deftera, Nicosia.

Of the total amount, CYP 250k will be spent on the acquisition of a property of 18 decares and 275 sq. meters in Pano Deftera, Nicosia. A further CYP 412.785 is the price for the acquisition of the Company’s equipment, which includes a concrete mixer, a power generator, tools, accessories, office and other equipment, water tanks, vehicles and other stock. The price for the existing debtors has been determined at CYP 550,513 while the remaining CYP 100,000 is goodwill.
The acquisition price will be readjusted and/or differentiated in relation to the final sums of the stock and the debtors one day prior to the finalization of the agreement.
The agreement will be finalized on July 1, 2007. Pharmakas Quarries Ltd already holds two ready-made concrete companies. The acquisition of the new company will contribute to the strengthening of the Group’s market share in Nicosia, reducing the cost of production due to the economies of scales. The increased sales in the sector will also increase the sales of the parent company, Pharmakas Quarried Ltd via the consumption of the quarry’s row materials.