A proposal to acquire 100 per cent of the issued share capital of Proodos Public, and by extension Rodon Hotel in Agros, has been presented to its board of directors, it emerged on Friday.
According to a public statement, this preliminary offer, submitted on Thursday, is now under review.
Specifically, Proodos, also known as the Agros Development Company, is considering a full acquisition offer after its board of directors received a preliminary proposal from an investor.
The company has stated it will gather more details to evaluate the proposal fully, with the investment community being informed of any developments.
According to local outlet, InBusinessNews, this offer, submitted on Thursday, September 26, was immediately examined by the board, which decided to enter negotiations with the prospective buyer.
The discussions aim to clarify the investor’s intentions, which could lead to the acquisition of either the entire share capital or part of it.
Past attempts to secure similar deals have failed, with no agreements finalised, despite previous interest in Proodos and its Rodon Hotel.
In light of the recent proposal, the Cyprus Stock Exchange (CSE) has announced a temporary suspension of trading in Proodos shares.
This action, effective from today, Friday, September 27 follows a request by the company and is in accordance with Article 183 of the Cyprus Securities and Exchange Law.
No over-the-counter (OTC) transactions will take place during this period either, as stated under Article 23 of the CSE Law.
In terms of financials, Proodos reported a significant drop in revenue for the first half of the year.
Earnings fell by 16.6 per cent, down from €1.8 million in 2023 to €1.5 million in 2024, while a half-year loss of €72,139 was reported, contrasting sharply with the €176,108 profit from the same period last year.
The company’s reduced income is attributed to a substantial 30.58 per cent decline in overnight stays at the Rodon Hotel, which experienced only a 49.34 per cent occupancy rate compared to 71.08 per cent in 2023.
It should be noted that earlier this month, chairman of the Agros Development Company Antonis Pissarides highlighted the urgent need for support for mountain hotels, saying that they are at risk of permanent closure.
Pissarides warned that this could have a “serious impact on the Cypriot countryside and local economy” and called for immediate action to prevent this from happening.
In an interview featured in the August issue of Xenodochos magazine, Pissarides emphasised that for hotels in mountainous regions, “the future is not promising without compensatory measures that both reduce operating costs and increase occupancy and revenue”.
He added that he had already prepared a detailed study with specific recommendations for compensatory measures aimed at promoting sustainable tourism development in these areas, which he has since submitted to the relevant authorities.
He also underlined the vital role that these hotels play in “keeping the countryside alive”.
