Vassiliko acquires Atlas for CYP 356.000

Vassiliko Cement Public Company Ltd announced the 100% acquisition of the issued share capital of the subsidiary A.E.S Atlas Ready Concrete Ltd via the 100% subsidiary of the Company, Vassiliko (Building Materials) Ltd. 

Atlas is actively involved in the sector of ready concrete in Drouseia Industrial Area, north of Paphos, since July 2004.  In August 2004, Vassiliko Cements acquired 51% of the company. 

The payment for the acquisition of 24,500 shares of nominal value CYP1 each, that is, 12,250 shares by Christakis Christou and 12,250 shares by Panayiotis Christou, which are 49% of the issued share capital of Atlas, has been set at CYP356,000 cash.  The net negative asset acquired amounts to CYP76,000 and the goodwill stands at CYP432,000.  According to the audited results of the previous years, Atlas showed a turnover of CYP 2.5 mln in 2005, gross profit of CYP 776k, operating profits of CYP 58k and a net loss of CYP 8.000, compared to CYP 17.000 net loss in 2004.

Messrs. Christakis Christou and Panayiotis Christou submitted their resignation from the Board of Directors of Atlas after the acquisition of their shares.  Christakis Christou also resigned from the post of General Manager. 

The agreement was reached within the framework of the enforcement of the strategic for the expansion of the Group’s activities in the construction industry.  With the full acquisition of Atlas, Vasiliko Group will take advantage of the synergies with Estia Ready Concrete Ltd (100% subsidiary of the Group, which is actively involved in Ayia Varvara Industrial Area) in organizational, administrative and logistics issues.