* Cyprus Stock Exchange listing in October, Pokka Corp to take 7% *
Pantelis Constantinou hopes to raise his stake in Pancyprian Bakeries from 28% to a controlling 51% by the end of the year, following the flotation of his own PC Splash Water Ltd on the Cyprus Stock Exchange next month.
Constantinou bought his stake last year from Dinos Koiliaris, who was instrumental in merging several smaller bakeries and flour mills into Pancyprian in 1970, expanding the company to the current 32 outlets and two state-of-the-art plants in Kokkinotrimithia and Limassol employing 470 people in all. The company also operates a subsidiary, the flour mill Grain Millers & Traders Co Ltd.
The government will be eager to offload its 14% stake in the company as part of a wider plan to reduce its budget deficit through the sale of non-essential assets. But Constantinou is reported to be considering a capital increase that would reduce the state’s participation in the company, as well as the balance held by Koiliaris and other smaller shareholders.
“Mr Pokka”, as Constantinou is widely known from the distribution of the coffee drinks, is already involved in the general facelift that the company is undergoing, with the outlets expected to be rebranded as simply “Bakers” and return to steady profitability.
PC Splash Water is expected to be listed on the CSE Alternative Market on October 10 with the aim of tapping fresh funds to help finance future projects. For the time being it is a retail products company distributing Pokka coffee, Snapple fruit drinks and Loux soft drinks, as well as the Papa John’s pizza chain.
After the listing, Constantinou will dilute his share in the company to 84.65%, with Singapore-based Pokka Corp. holding 6.7%. Pancyprian Bakeries will receive 3.1% of the shares and 0.7% will be held by Pissis Ltd. With an issued share capital of 35,051,833 shares at 1.20 euros each, the company’s capitalization is estimated at 42.06 mln euros.
The initial public offering (IPO) will consist of 1,372,502 shares or 3.92% of the capital.
The company is expected to pay out a dividend to new shareholders for the 2010 financial year, while this year’s profits are expected to reach about 3 mln euros, maintaining the company on a steady dividend-paying policy.
Pantelis Constantinou will stay on as executive chairman, with the remaining members of the board including popular singer Michalis Hadjiyiannis, Christis Lottides, Constantinos Zenios and the CEO of Pokka Corporation (Singapore) PTE Ltd, Masahiro Hirata.
