ELGEKA sells Arivia for 20 million euros

ELGEKA SA on Tuesday announced the signing of an agreement to sell its equity stake in Arivia ABEE, paving the way for the sale of its subsidiary to a Greek company for 20 million euros.

The transaction will be funded by an international investment vehicle, led by “Southbridge Europe Mezzanine SICAR”, and will cover 90.04 pct of Arivia’s equity capital. ELGEKA will use the proceeds of the transaction as collateral to issue a new bond loan aimed to restructure its debt and to repay part of its debt (10 million euros) to creditor banks.

ELGEKA said the transaction will significantly improve its financial situation and safeguard moving capital to support and implement its business plan.

“The completion of the sale of Arivia is part of a strategy plan implemented in the last 18 months aimed to redefine the group’s business activity and to focus on the core of its activities: consumer products and traditional logistics,” ELGEKA said in the announcement.

The impact from the sale on the group’s financial figures will be: 7.51 million euros in transaction profit and 3.75 million euros in consolidated level.