Investor interest to acquire Rodon hotel in Agros

A takeover bid has been submitted to acquire 100% of the issued share capital of Proodos Public Ltd, the company that owns the well-known Rodon hotel in Agros.

Proodos announced on the Cyprus Stock Exchange (CSE) that its Board of Directors has received a preliminary expression of interest to acquire 100% of its issued share capital, and that the Board intends to gather more information and examine the proposal, before updating the investing public accordingly.

Sources have told InBusinessNews that the proposal was submitted on 26 September and immediately put under the microscope of the Board of Directors, which decided to start a negotiation-consultation with the prospective investor. Its aim is to clarify the exact intentions of the investor, and whether the agreement will involve the company’s entire share capital or part of it.

The same sources said that this is not the first time investor interest has been shown in Rodon, though nothing has come to fruition to date.

Following the news, the CSE announced that it was temporarily suspending trading of Proodos’ shares, starting 27 September up until a new announcement is issued depending on the developments.

The hotel’s reduced profitability

Meanwhile, according to Proodos’ interim financial report for the first half of the year, its revenue amounted to €1.5m compared to €1.8m in the corresponding period last year, marking a decrease of 16.6%.

At the same time, the loss attributable to the shareholders for the first half amounts to €72,139. In the corresponding half of 2023, the company had a profit of €176,108.

The decrease in revenue and actual loss during the first half is due to the fact that overnight stays and, by extension, the percentage occupancy of the Rodon hotel, decreased by 30.58%, since the occupancy in the first half of the year was limited to 49.34% compared to 71.08% in the corresponding period last year.

New Board member

In another development, Proodos Public Ltd announced the appointment of Marios Stavrou, Chartered Accountant, to the position of Non-Executive/Independent Director of the company with effect from 26 September, 2024.