Published on Tuesday, March 13, 2018

Minoan close to sale of travel and leisure arm

Minoan is pressing ahead with the sale of its Glasgow-based travel and leisure division, having signed an exclusivity agreement with its preferred buyer.

It said due diligence has begun and is 'proceeding according to plan'.

Minoan said the sale would leave the Group 'substantially' debt free.

In an update to shareholders, it said trading for the first quarter of its financial year is significantly ahead of the same period of last year, with gross sales up 15%.

"The Greek property market is finally showing signs of recovery both in the retail markets for villas and apartments and in terms of interest in tourism assets where a number of deals are now in progress with prices being achieved substantially ahead of previous expectations," it said.

It is now focused on a luxury resort development in Crete, and announced that it had recently received an approach from a third party interested in acquiring a significant stake in the project.

"Discussions are at an early stage and the Company will provide shareholders with an update in due course," it said.

In its update to directors, the company said: "At the current share price, the market capitalisation of the quoted group is approximately £11.4 million, which represents a discount of over 70% to the Group's last published net asset value of £43 million.

"As a result, it said the Directors take the view that, where debt finance is available, it is preferable to issuing ordinary shares at current levels. Accordingly the Company is in the process of undertaking a small debt fundraising which will enable it to meet its liabilities until the material and positive developments outlined above are closer to crystalisation."

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