LEISURE: Greek firm PANGEA to take over Hilton Cyprus

Hilton Cyprus owners The Cyprus Tourism Development Public Company and NBG PANGEA have come to an agreement over sale of the capital’s only five-star hotel, with just the fine print remaining.

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According, to Phileleftheros daily, Vibrana Holdings Ltd, a Special Purposes Vehicle set up by Greek company PANGEA (90%) and Invel (10%) has put in a public offer to acquire the majority package of The Cyprus Tourism Development Public Company Ltd, which belongs to Greece’s Marfin Investment Group.

Reportedly, Vibrana has submitted a public offer for the acquisition of at least 90% and up to 100% of the issued share capital of Cyprus Tourism Development Company under the terms and conditions listed in the Public Offer document.

The period of acceptance of the Public Offer by the shareholders expires on March 15, 2019 at 1:30 pm.

Some 75.08% of Cyprus Tourism Development Company Limited is controlled by MIG, 21.74% by Louis Group and smaller shares by several minor shareholders.

Greece’s Marfin Investment Group, the major shareholders in the hotel’s current ownership structure, had instructed PwC to seek a buyer for the 96.82% of Cyprus Tourism Development Company, back in October.

Hilton Cyprus is mainly a business hotel as its customers are primarily business professionals, and it is known for hosting large conferences on which its revenue is mostly based.

The hotel's 2017 revenues amounted to EUR 12 mln, continuing the upward trend of the past five years.

Profit before taxes, interest and depreciation amounted to EUR 3.5 mln in 2017 and this year it is estimated to be around EUR 3.8 mln.

The hotel has drastically reduced its debt, with estimates putting it at EUR 500,000 by the end of 2018.

It is unclear whether the takeover will see the Hilton brand remaining intact.