The proposed consideration was lower than the average trading price of the period up to 5 months before the announcement of compulsory public proposal submission
The proposed consideration by Logicom Services about the acquisition of Demetra Holdings amounting to € 1.55 per share, is judged by the second Board of Directors that it is not reasonable and fair.
As announced by the DEM, the proposed consideration was lower than the average trading price of the period up to 5 months before the announcement of compulsory public proposal.
It is emphasized that the company’s stock generally has good marketability, taking into account that the overall stock market on the CSC is not so marketable.
It is also reported that the proposed consideration of € 1.55 per share is discount from net asset value per share on 31 December 2023, 30 June 2024 and September 30, 2024 (€ 1.84, € 2.03 and € 2.05 respectively).
The company’s shareholders at an extraordinary General Meeting dated 09 January 2025 approved the sale of the percentage owned by the company to the Hellenic Bank (21.33%, 88.064.705 shares) at Eurobank in the financial consideration of € 4,843 per share, ie around € 426.5 million.
It is emphasized that taking into account the company’s net assets as shown in the company’s investment status on December 31, 2024 (€ 499.571.285) – taking into account the above mentioned sale of Greek bank shares at Eurobank – the OEM per share is around € 2.50.
It is also added that even if the conservative approach is adopted and it is considered that the company will suffer the maximum loss (€ 13.029.953) for the property it holds in Bucharest (Romania) and for the guarantee of the connected companies, the OEM per share is expected to be at higher levels (€ 2) per share (€ 2.4). (€ 1.55 per share).
It is also stated that the proposal does not intend to consider the possibility of rebuilding the company but there is no intention of a change in existing employment policy or employment level in the company.
The proposed strategic plans for both the company and the proposition itself relate to the continuation of the activities of the two companies as they are at this stage, without any changes in their activity, employment and places of companies’ activities.
It is reported that the basis for calculating the proposed consideration is considered to be accepted because it has covered the most important factors that are market value, marketability and net value per share.
It is noted that due to the lack of analytical financial forecasts, the use of the discount cash flow method was not possible. Also, because there is no dividend distribution policy, the method of discounting dividend was not possible.
It is noted that the Market Approach was not selected by the proposal, as information was not available on trading prices / comparable businesses taking into account the special characteristics of the company.
The company is an Investment Holding Company, acting as a portfolio and real estate investment company as well as possessing significant fluid assets and other investments.