An in principle agreement has been reached to sell The Amathus Beach Hotel in Limassol for €71 million to a new company, according to a filing on the Cyprus Stock Exchange on Monday.
Under the binding heads of agreement signed by Amathus Public with Muskita Hotels and Palmar Investments on Saturday, a new company will be set up in which Amathus Public Ltd will have a 25% stake, Muskita Hotels Ltd a 50% stake and Palmar Investments Ltd the remaining 25%.
The new company will buy the Amathus Beach Hotel Limassol for €71m, including the land the hotel owns and the land it leases, the hotel’s contents as well as the trade mark Amathus Beach Hotel.
The agreement is subject to the approval of the authorities of the republic, where these are required.
The agreement between shareholders and the sales contract are still being drafted. Employees at the hotel will be employed by the new company, in line with the law.
In 2012 Amathus losses fell to €1.3m from €2.1m in 2011.
The company – which posted half year losses of €3.6m - expects to close 2013 in the red.