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Saturday, 20.04.2024, 02:24
Hans Luik to buy Pro Kapital's hotels in Tallinn, Riga
"The goal of the transaction, including the disposal of the shares, is
to exit the Tallinn and Riga hotel market which has not been a core business
for the group. The Tallinn and Riga hotel markets are in a positive state, so
for us it is the right moment for the exit. Our goal is to concentrate on the
development of residential and commercial real estate and to use the monetary
resources received from the transaction to speed up the development of our core
business in the markets, which have positive trends," Paolo Michelozzi, CEO of Pro
Kapital Grupp, said in a statement made to the stock exchange.
Buyers of the real estate related assets are Sisne Invest OU in Estonia and SIA Sisne Invest Riga in Latvia, Pro
Kapital told the stock exchange. The transaction is dependent on the
conditions to be fulfilled by the buyer and they have until September 30, 2017,
to fulfill the conditions.
The estimated amount of the transaction is 13 million euros, of which 6.9
million euros is the amount allocated to PK
Ilmarine, which has been paid during the fulfilment of the transaction and
the base price of PK Riga is 6.1 million euros. The exact price of
the Latvian transaction will be determined upon the closing of the transaction,
as the price is dependent on the result of economic activity of the hotel as of
the closing. Altogether 630,000 euros has been paid upon signing and the rest will
be paid upon the closing of the Latvian transaction.
As a result of the transaction, the revenue of Pro Kapital Group will decrease by 3.1 million euros, while net
profit will fall 900,000 euros, at the same time, based on the 2016 financial
results the financial liabilities of the group will decrease by 6.1 million
euros and cash assets will increase by 6.9 million euros.
As of closing the transactions, all contracts between issuer and disposed
companies are terminated. The issuer shall conclude the fix term license
agreement for the use of PK Hotels, PK Ilmarine hotel and PK Riga hotel
trademarks with the buyers.
Due to the sale of PK Ilmarine
hotel operator, head of the legal department of Pro Kapital Ervin Nurmela
resigned from the management board of OU Hotel Management Services and persons
related to the buyer were elected as new board members. Boards of companies related
to the Latvian transaction will continue to serve as board members until the
closing of the Latvian transaction.
As a result of the transaction, Pro
Kapital will exit the Tallinn hotel market and after the closing of the
Riga hotel transaction will exit also from the Riga hotel market.
Founded in 2014, BBH Hotel Group
is the group's parent company, which operates the Laulasmaa Spa and Conference
Hotel and Hotell Euroopa and Tallinn Seaport Hotel located in the Tallinn city
center. According to the season, the group employs approximately 300 people.