E.I. Papadopoulos is proceeding with an internal restructuring, setting in motion the merger by absorption of I.K.E. Akinita S.A., the company that owns and manages the group’s real estate assets.
According to the merger agreement and the valuation report filed with GEMI yesterday, June 30, the absorbed company owns three main properties in Tavros, with a total fair value of 28.55 million euros.
These are the industrial complex at 26 Petrou Ralli Street, where the production activity of Papadopoulos Biscuits is housed, two auxiliary buildings in the same city block, and one more commercial property at 55 Agias Annis Street. The value of the land was estimated at 16.53 million euros and the building facilities at 12.01 million euros.
The net position of I.K.E. Akinita was determined at 20.88 million euros, while its assets amount to 29.16 million euros. Apart from the properties, it has cash reserves of approximately 221 thousand euros and trade receivables of 394 thousand euros, while its total liabilities amount to 8.28 million euros, of which 7.7 million euros concern bond loans.
As part of the merger, Papadopoulos’ share capital will be increased by 4.717 million euros through the issuance of 235,870 new common shares, raising the total share capital to 15.217 million euros. The difference between the valued net position and the nominal capital increase, amounting to 16.17 million euros, will be transferred to a share premium reserve.
According to the management, the merger aims at the simplification of the corporate structure, the reduction of administrative and operating costs, the more effective management of the properties, and the consolidation of the real estate assets with the company that already uses the facilities for its industrial activity. Upon completion of the process, I.K.E. Akinita will be dissolved without being placed into liquidation, and all of its assets and liabilities will be transferred by operation of law to Papadopoulos.