…CTC to give Ermes shares at 24c
Ermes Department Stores, one of the largest retailing chains in Cyprus announced plans to list on the Cyprus Stock Exchange once the procedures for the share offering by Cyprus Trading Corp. of Ermes shares to F.W. Woolworth shareholders is completed.
The Group includes the Ermes Superstores and Debenhams retail outlets, as well as the Super Home Center D.I.Y, the chain stores Zako and the stores Next, Adams, Peacocks and Miss Sixty. Since December 20, 2004, the British based Debenhams Retail PLC participates with a 10% stake in the share capital of Ermes.
The Board of Ermes announced that it will reveal further details on its planned application to seek a listing on the CSE once the prospectus of the public offer of CTC for the Ermes share offering is approved sometime in May by the Securities and Exchange Commission.
CTC share offering
Following the reorganisation and separation of operations of Woolworth Group on December 31, 2003, CTC acquired the majority stake of Ermes and according to a binding commitment, it had promised to offer the opportunity to all shareholders of Woolworth – if they wish so – to acquire those shares. CTC is bound to offer the shares of Ermes at the price of acquisition plus the interests and other expenses until the completion of the Offer. Based on the above, the price of Ermes share has been set at 24 cents.
The offer applies to the shareholders of Woolworth only and concerns 144,570,316 shares of Ermes, which will be allocated in the ratio of 3 shares of Ermes of nominal value 20 cents each for every 2 shares of Woolworth held. The payment will be carried out at the acceptance of the Offer.
Free warrants & dividend
The Board of Directors of Ermes at a meeting held on March 10, 2006 decided to allocate to all shareholders of Ermes 1 warrant for every 5 shares of Ermes. The exercise price for each warrant has been set at 40 cents each and their exercise date will be in April 2011.
At its next meeting to take place in April 2006, the Board of Directors of Ermes will examine the proposal to declare a dividend of 8% on the nominal value of the share of 20 cents, or 1.6 cents per share, at a total cost of CYP 2.8 mln from the profits that the Company has generated.
It is clarified that the dividend will be paid to all shareholders registered in the share register after the completion of the procedure of the Offer of shares of Ermes by CTC to the shareholders of Woolworth.
The new shareholders that will acquire shares of Ermes will be entitled to the dividend and the warrants.
