Hong Kong investor has big plans for the Rodon Mount Hotel & Resort

Hong Kong businessman Balram Chainrai appears to have grand plans for the Rodon Mount Hotel & Resort in Agros, having submitted a proposal to the shareholders of the Agro Development Company "I Proodos" Public Ltd for the acquisition of up to 100% and a minimum of 76% of the company's issued share capital.

As InBusinessNews has been informed, this would not be the first time the businessman has invested in Cyprus. He is believed to have already bought a number of old hotels, which he has upgraded, and is also constructing The Dream Tower in Limassol.

As far as the Rodon is concerned, Chainrai appears to consider it a good investment opportunity towards expanding his activities in the hotel industry and his plans, as InBusinessNews has been informed, are to, if and when he takes over the management of the hotel, to significantly renovate and turn it into an exclusive hotel for winter tourism.

In addition, the investor believes that with the necessary renovation and upgrading, the Rodon will be able to attract foreign tour operators who deal, among other things, with winter tourism.

At the same time, Chainrai appears willing to invest whatever money is needed to upgrade the hotel and achieve his goals for it.

Attractive proposal

It is also worth noting that the proposal submitted to the shareholders of the Agro Development Company "I Proodos" Public Ltd is quite attractive since the investor has offered €3.50 per share payable in cash, while the nominal value of 3,590,215 shares of the Rodon is €1.71 per share.

It is noted, moreover, that in order for the Rodon acquisition proposal to proceed, the investor must secure the irrevocable commitment of the shareholders to secure at least 76% of the issued share capital of the company.

At the same time, a legal, financial and technical audit (due diligence) should be carried out, which the investor believes will not take more than 30 days.

Also, according to information sourced by InBusinessNews, after the submission of the complete proposal by the investor, the board of directors of the Agro Development Company "I Proodos" Public Ltd is expected to meet within days to evaluate it and decide whether to accept it or not .

However, based on the timetable that has been set, the investor expects the shareholders' response within the week or early next week at the latest, in order to initiate the necessary procedures for the acquisition of the Rodon as soon as possible, even within October.

The six major shareholders

It is noted that according to what the company recently announced through the CSE, the major shareholders of the hotel, who own more than 5%, are the following:

• Antonis Pissarides, Chairman of the Board: 11.85%
• Nikos Hatziosif, member of the Board of Directors: 9.32%
• Universal Life Insurance Public Company Ltd: 17.30%
• Apeiteion Foundation: 15.98%
• CyVenture Capital Public Company Ltd: 8.97%
• Marios Choiromeridis: 7.32%

Based on the same announcement, the distribution to the general public amounts to 29.19% of the share capital.

(Source: InBusinessNews)