Banks approve Korres-Morgan Stanley deal

Korres SA on Wednesday announced that its cooperating banks approved an investment deal announced last December under which Morgan Stanley will acquire a majority stake in the company through Nirea Maiden Holding and Profex.

Under the deal, North Haven Private Equity Asia IV -an investment fund owned by Morgan Stanley – through NIREA Maiden Holding BV and Profex Inc, a cosmetics distribution company in China, will buy 56 pct and 14 pct, respectively in Nissos Holdings CY Ltd – a company owned by George Korres – for 48.3 million euros in cash. Nissos will then purchase a 52.3 pct equity stake in Korres at a price of 5.08 euros per share raising its equity stake in Korres to more than 82 pct and will launch a public tender for the purchase of Korres outstanding shares.

Profex and Korres will sign an exclusive distribution contract for the distribution of Korres’ products in China, Hong Kong and Macau.

Following completion of the public tender, all parties agreed to proceed with a share capital increase plan worth up to 10 million euros to finance the Korres Group’s future development.