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Petrolina super deal with Greek aroma

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Petrolina super deal with Greek aroma

Petrolina proceeded with the acquisition of SILK OIL on 31/12/2020 according to an announcement, a deal amounting to € 9 million.

The acquisition is expected to have a positive impact on the prospects and results of the Petrolina Group due to the economies of scale and synergies that can be created, PHL’s many years of experience in the petroleum sector as well as the experience from the existing Petrolina Group presence in Hellas.

SILK OIL has been active in the petroleum trade since 1988 and is based in Rhodes and has (414) points of sale of liquid fuels and LPG throughout Greece and four branches in Piraeus, Thessaloniki, Crete and Samos. It is noted that for the year 2018 SILK OIL presented a turnover of € 209.3m. and net losses of € 187.3 thousand, while for the year 2019 it presented a turnover of € 194.7m. and net losses of € 18k.

The announcement as it is

Petrolina (Holdings) Public Ltd (“PHL”) wishes to announce the intention to start operations of the new subsidiary PW Bunkering Services (East Med) Ltd (100%) of the Petrolina Group, which on 31/12/2020 has proceeded to conclusion of an agreement (the Acquisition Agreement) for the acquisition of 100% of the share capital of the Greek societe anonyme under the name “SILK OIL SOCIETE ANONYME INDUSTRIAL – COMMERCIAL – IMPORT” – PETERIELI

The Acquisition Agreement is part of the further development of the existing operations of the Petrolina Group in Greece.

SILK OIL has been active in the petroleum trade since 1988 and is based in Rhodes. It owns privately owned liquid fuel storage facilities in Crete and Samos for the use of petroleum and LPG products and maintains four (4) branches in Piraeus, Thessaloniki, Crete and Samos through which it supplies liquid fuels and liquefied petroleum gas throughout Greece. It has four hundred and fourteen (414) points of sale of liquid fuels and LPG throughout Greece bearing the SILK OIL brand. SILK OIL provides services to gas stations and heating oil distributors operating in Greece. In addition, the work of SILK OIL includes

network of tankers through which petroleum products are distributed throughout Greece.

The acquisition is expected to positively affect the prospects and results of the Petrolina Group due to the economies of scale and synergies that can be created, PHL’s many years of experience in the petroleum sector as well as the experience from the existing presence of the Petrolina Group in Greece.

The financial valuation of the acquisition of the share capital of SILK OIL was based on the net asset value based on the audited financial statements of SILK OIL as at 31 December 2019, on the historical financial data of SILK OIL, as well as on the growth activity of Petrolina Group in Greece based on the business plan and prospects of SILK OIL.

It is noted that for the year 2018 SILK OIL presented a turnover of € 209.3m. and net losses of € 187.3 thousand, while for the year 2019 it presented a turnover of € 194.7m. and net losses of € 18k.

The redemption consideration has been agreed in a maximum amount of € 9m, of which € 7.3m. paid in cash at the same time as the signing of the Acquisition Agreement and the transfer of the shares. Amount up to € 1.7m. (guarantee amount) has been retained and may be paid in full or in part after the determination of the final fair value of the net assets and liabilities of SILK OIL (net assets), which will be calculated after the completion and preparation of financial SILK OIL statements on the basis of International Financial Reporting Standards by certified auditors with a reporting date of 31/12/2020 as well as subject to other terms after the completion (post completion terms) of the Acquisition Agreement. These financial statements will determine the amount of any goodwill that may arise and which will be recognized in the consolidated financial position of PHL at the time of acquisition.

It is an explicit term of the Acquisition Agreement as the financial statements of SILK OIL based on the International Financial Reporting Standards dated 31/12/2020 are delivered until 31/1/2021 for examination by the Group and determination of the amount of any goodwill, if any.

The transaction was made on a purely commercial basis and the investment will be accounted for using the acquisition method. 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 Company, always aiming at full transparency for the information of its shareholders and the investing public, will make an additional announcement after the completion of the above actions and report the final redemption amount and the amount of any goodwill, if any, depending on the case.

Source: www.philenews.com
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