Aspis to call up EUR 45 mln in capital, proceed with 200m bond issue

Aspis Holdings Public Co Ltd (ASP) announced plans to proceed with an immediate capital injection of EUR 45 mln to boost its capital and reserves, while also proceeding with efforts to issue bonds of up to EUR 200 mln that will be listed in Luxembourg.
Aspis Holdings CEO Lambros Christophi said the EUR 45 mln capital increase will be made immediately. For this, the company will send new EGM invitations, a process that needs 21 days.
Furthermore, Aspis is in contact with two foreign institutions advising it on the method of how to raise up to EUR 200 mln in new funds through a bond issue, part of which may be convertible, which will be listed in Luxembourg.
“The funds will be used to finance our expansion drive in the usual sectors that we like, including banking, insurance and real estate,” said Christophi.
By early September, he said more details will be provided.

Targets to be revised
Christophi said in September, the Group will also revise its 3-year Growth Plan targets, since it has already met and exceeded the profitability targets set in the 2008-2010 plan.
ASP announced net profit attributed to shareholders of EUR 27.99 mln for the first half of 2008 compared to EUR 12.17 mln in the same period a year ago, which means it is close to its initial full year profitability target of EUR 30 mln.
The bulk of the Aspis profits however were derived from EUR 22 .2 mln in profit from sale of investments, for which there is no breakdown in the accounts. When the Financial Mirror asked for clarifications and further details regarding the origin of these profits, Christophi said part of that was from proceeds of land sale, part from sale of shares and the rest from associates, including insurance company surpluses on revaluations.