CTC to proceed with restructuring plan

…CTC Scandia becomes “autonomous”
Cyprus Trading Corporation Plc (CTC) is to proceed with the implementation of its broad based restructuring plan in line with a previous decision taken by the Board of Directors.
The restructuring of CTC entails the transfer of the activities of CTC-Scandia, CTC-Argosy, CTC-Cassandra, CTC-Domex and CTC-Automotive into separate subsidiaries.
Following the restructuring, the Managements of the new Companies will focus in the sector of their activities and specialization more effectively and will achieve their targets to the benefit of the Company and its shareholders. The subsidiaries will be allowed to proceed with strategic alliances in the sector of their activities to deal with the increasing competition.
In the first stage, the Board of Directors of CTC decided to transfer the activities of CTC-Scandia to IDEEA Distribution of Appliances Ltd (IDEEA), 100% subsidiary of Scandia Company Ltd, which belongs to CTC, with effect from January 1, 2008.
The staff members of CTC Scandia will work for IDEEA Distribution of Appliances Ltd under the same terms, obligations and benefits. All rights and obligations of CTC in relation to distribution agreements, representations and goods’ and services’ suppliers are transferred to IDEEA.
All stores will operate normally, under the trade name SCANDIA. The transfer of CTC-Scandia will be carried out on the basis of the net asset of the activity, pursuant to the final results for the year ended December 31, 2007.