Agros hotel set for significant renovation if acquisition proposal accepted
Hong Kong investor and entrepreneur Balram Chainrai has submitted a proposal to acquire up to 100 per cent, with a minimum of 76 per cent, of the issued share capital of the Agros Development Company “Proodos” Public Ltd, which owns the Rodon hotel in Agros.
Should this move go forward, it would not be Chainrai’s first investment in Cyprus. He has previously purchased and renovated several older hotels and is currently developing the Dream Tower in Limassol.
According to reports which emerged this week, Chainrai views the Rodon hotel as a promising investment opportunity to expand his activities within the hotel industry.
It has been reported that should he gain management of the hotel, Chainrai plans to undertake significant renovations to transform it into an exclusive venue targeting winter tourism.
Local media outlet InBusinessNews reported that “the investor believes that, with the necessary upgrades, Rodon could attract foreign tour operators focusing on winter tourism”.
In addition, Chainrai has “indicated his willingness to invest the necessary funds to enhance the hotel and achieve his objectives”.
His proposal includes an attractive offer of €3.50 per share in cash, while the nominal value of the 3,590,215 shares in Rodon stands at €1.71 each.
For the acquisition proposal to proceed, Chainrai must secure irrevocable commitments from shareholders to attain at least 76 per cent of the issued share capital.
Additionally, a legal, financial, and technical due diligence process will need to be conducted, which the investor estimates will take no more than 30 days.
According to the reports, following the submission of the complete proposal, the board of directors of the Agros Development Company “Proodos” Public Ltd is expected to convene in the coming days to assess and decide on the proposal.
Based on the timeline provided, Chainrai anticipates a response from the shareholders within this week or, at the latest, early next week, to facilitate the necessary procedures for acquiring the Rodon hotel as soon as possible, potentially within October.
According to a recent announcement by the company through the Cyprus Stock Exchange, the major shareholders of the hotel, each holding over 5 per cent, include Antonis Pissaridis, Chairman of the Board, with 11.85 per cent, and Board Member Nicos Hadjiosif, who holds 9.32 per cent.
Universal Life Insurance Public Company Ltd owns 17.30 per cent, the Apeiiteion Foundation holds 15.98 per cent, CyVenture Capital Public Company Ltd has 8.97 per cent, and Marios Choiromeridis holds 7.32 per cent.
Finally, public ownership accounts for 29.19 per cent of the share capital.