Petrolina (Holdings) Public Ltd announced on the CSE that it has jointly entered into an agreement with Intergaz Ltd and Synergas Ltd, to conclude an agreement for the sale of a number of shares held by each company in the issued share capital of VLPG Plant Ltd to Yugen Limited (” Yugen “), which belongs to the group of companies of the Greek company Hellenic Petroleum SA.
Under the agreement, PHL is selling 90,749 shares to Yugen, which corresponds to 15% of VLPG's total share capital. It is recalled that VLPG was created as a joint venture between the companies PHL, Intergaz Ltd and Synergas Ltd with the aim of constructing a gas terminal on land that will be granted for this purpose to VLPG by the Government within the Industrial and Energy Zone of Vasilikos.
Upon completion of the construction works, VLPG will be active in the field of LPG storage and management within the terminal and will operate a LPG cylinder control and repair unit. With its expanded composition, the shareholders of the consortium estimate that there will be economies of scale in the activities of VLPG. The sale agreement was signed today, June 2, 2021, and the sale price of shares held by PHL in the issued share capital of VLPG to Yugen amounts to € 1,128,000, which will be paid in cash upon completion.
In the financial evaluation of the above transaction as well as in the assessment of the Board of Directors regarding the fair value of the transaction, no advice has been received from any external expert. The shares are sold on a purely commercial basis and the price represents the fair value of the percentage of VLPG shares to be purchased by Yugen.
The transaction is not related to any “designated person” according to the meaning given to the above term in article 137 (3) of the Cyprus Securities and Exchange Law of 1993 (14 (I) / 1993) (as in force).
The sale of the shareholding is expected to result in an accounting profit of € 220,000 which will be recognized in the financial statements of PHL in the financial year that the agreement will be completed as a profit from the sale of shares of an associated company.
Upon completion of the share sale agreement, PHL will hold 32%, compared to the initial 47% stake in VLPG, while Yugen will acquire an additional 17% from the other shareholders of the consortium and will also hold 32% of the share capital of VLPG. The management of VLPG will be exercised on a balanced basis by its four shareholders.
The conclusion of the agreement for the sale of VLPG shares to Yugen is subject to the approval of the Competition Protection Commission to which a relevant request will be submitted.