Cyprus Cement saw its book value per share jump by 113% to EUR 2.0029 per share from EUR 0.94 previously after a massive increase in revaluation of land assets following the deal with Vassiliko.
The Group added EUR128m (CYP75m) to its land holdings through the Reserve account, pushing its shareholders’ equity to EUR 237.2m from EUR108.5m in 2006, while its land holdings now amount to EUR322m from EUR173m in 2006.
On 1 January 2008, the Cyprus Cement Group acquired 25,3% of Vassiliko Cement Works Public Company Ltd in return for the sale of the cement manufacturing and distribution operations of the Company and its interest in CCC Buildings Materials Ltd.
The sale consideration was agreed at EUR52.597.405 and was paid with the issue to the Company by VCW of 18.199.794 new shares which represent 25.3% of the new total issued share capital of VCW. The agreed price per share was calculated at CYP1,67 (EUR2,89), being the weighted average closing price of the VCW shares during the last 3 months preceding the date of the agreement.
The agreement was granted the approval of the Commission for the Protection of Competition. Moreover, the issue of the new shares by VCW to the Company was approved by the extraordinary general meeting of VCW on 19 December 2007. The effective date of the sale was the 1st of January 2008.