Ermes announces intention to sell Superhome Center DIY to foreign buyer

Public company Ermes Department Stores Plc has announced its intention to sell its 51% stake in Superhome Center DIY Ltd. To proceed, Ermes has scheduled an extraordinary general meeting (EGM) of its shareholders to approve the transaction.

According to the announcement, Ermes will sell its shares to a foreign buyer/investor for a total price of €94 million, minus €13 million reserved for potential future expenses and approximately €7 million in outstanding bank obligations at the time of transaction completion.

Ermes Department Stores Plc (Ermes) is a subsidiary of Cyprus Trading Corporation Plc (CTC) which owns 66.99% of Ermes' shares. The sale is intended to be conducted in cooperation with its co-shareholder in Superhome Center DIY Ltd.

The transaction is conditional upon terms and conditions standard for such deals. Ermes’ board believes the investment has matured and views the sale as beneficial for both Ermes and the CTC Group.

The net proceeds from the sale will be used to reduce debt:

• Approximately €11.3 million to settle Ermes’ banking and related obligations.
• Around €25.8 million to address banking obligations of CTC and its subsidiaries.

The company expects to record an accounting loss of approximately €13 million, based on the fair value recorded in its financial statements as of 31 December 2023, and the anticipated final sale price.

EGM details
The EGM will take place on Friday, 20 December 2024, at 10:00 a.m. at the company’s registered office on Limassol Avenue 200, Shacolas House, 2025 Strovolos, Nicosia.

Agenda

• Ordinary Resolution: Approval for part of the sale proceeds to be allocated toward settling obligations linked to guarantees previously provided by the company.

Details of the EGM notice, including registration date, member rights, proxy appointment forms, and an explanatory report, are available on the company’s website (www.ctcgroup.com) and the Cyprus Stock Exchange website (www.cse.com.cy).