On 29 September 2016 Dolphin Capital signed a binding agreement to sell its 49.75% stake in Aristo Developers Ltd (“Aristo”) to Mr. Theodoros Aristodemou for a EUR45 million cash consideration. This represents a 70% discount to the carrying value as at 31 December 2015 on a pro-forma basis reflecting Aristo’s debt restructuring agreed with Bank of Cyprus. The EUR45 million cash consideration is payable in quarterly instalments over three years and bearing annual interest of 4% in the first year, increasing to 5% and 6% respectively for each of the ensuing two years.
It also said:
- It had arranged a new EUR7.5 million 18 month credit facility with a major financial institution, subject to definitive documentation, which on signing will create additional liquidity for general corporate purposes.
- Amanzoe performance is significantly ahead on a year-on-year basis, especially with respect to villa rental income.
- Total Group Net Asset Value (“NAV”) as at 30 June 2016, as adjusted for the disposal of Aristo, was EUR355 million and EUR317 million before and after Deferred Tax Liabilities (“DTL”) respectively. This represents a decrease of EUR190 million and EUR164 million, or 34.8% and 34.1%, respectively, against the year end 2015 figures.
- NAV reduction is mainly due to: the reduction in the carrying value of Aristo by EUR35 million from the debt restructuring agreement reached with Bank of Cyprus in June 2016 and half year operating losses, as well as a further EUR109 million write-down on Aristo’s carrying amount to reflect the agreed EUR45 million sales price; and Dolphin’s regular operational, corporate, finance and management expenses, as well as the devaluation of the Americas properties in Euro terms due to the appreciation of the Euro against the US Dollar by c. 2%.
- No portfolio revaluation was undertaken during this period; the next full portfolio valuation will be conducted at 31 December 2016.
- Sterling NAV per share as at 30 June 2016 stood at 32p before DTL and 29p after DTL, a 26.8% and 26% decrease before and after DTL respectively compared to the 31 December 2015 figures. The decrease was mainly driven by the factors mentioned above, offset by a 12.3% appreciation of the Euro versus Sterling.
DCI : Dolphin sells Aristo at 70% discount