Dolphin Capital Investors Limited announced that on 29 September 2016 it signed a binding agreement to sell its 49.75% stake in Aristo Developers Ltd (“Aristo”) to Mr. Theodoros Aristodemou for a €45 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 €45 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.
According to Half Year Results for the six months that ended 30 June 2016:
- Arranged a new €7.5 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 €355 million and €317 million before and after Deferred Tax Liabilities (“DTL”) respectively. This represents a decrease of €190 million and €164 million, or 34.8% and 34.1%, respectively, against the year end 2015 figures
NAV reduction is mainly due to:
o the reduction in the carrying value of Aristo by €35 million from the debt restructuring agreement reached with Bank of Cyprus in June 2016 and half year operating losses, as well as a further €109 million write-down on Aristo’s carrying amount to reflect the agreed €45 million sales price; and,
o 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.
- The Company continues to have a significant asset base, after the sale of its shareholding in Aristo:
o Gross Assets of €700 million
o Total Debt of €215 million (€232 million as at 31 December 2015) with a Group total debt to total assets value ratio of 31% respectively. The remaining US$16.7 million of the 2016 Convertible Bonds, which matured on 31 March 2016, were repaid in full.
- Sue Farr joined the Board of Directors on 19 July 2016.
Commenting, Andrew Coppel, Non-Executive Chairman of Dolphin’s Board of Directors said:
“We are delighted to have completed the disposal of our holding in Aristo Developers. The sale will significantly enhance the Group’s liquidity and allow the Company the flexibility to deliver value for shareholders through the monetization of assets on a timely basis.”
Miltos Kambourides, Founder of Dolphin and Managing Partner of Dolphin Capital Partners said:
“The sale of Aristo Developers is the first major step towards further asset realizations and focusing on the Company’s core assets. We look forward to accelerating this process.”
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