from over the road27 Nov 2017 13:48
Minoan � waiting and waiting for payday
By Nigel Somerville, the Deputy Sheriff of AIM | Sunday 26 November 2017
I hold shares in AIM-listed Minoan (MIN), the ownership of which has proved a mighty frustration for years and years � first we had the almost interminable application for the resort at Cavo Sidero which was finally won and all appeals have now ended. But now we are waiting for the company to cash in�.how long will that take?
I had hoped that deals would be flowing � after all, the company announced back in June, as it revealed that the final appeals had been dismissed, that:
As a result of the Greek Supreme Court's decision, the Company can now accelerate the development of the Project, which will include, inter alia; the continuation of negotiations for joint venture arrangements with hoteliers, investors, partners and other parties
And�
I look forward to providing the market with more news in the near future
And in the interims, released 26 July we were told:
With the dismissal of the Appeals against the PD, the Group is now in position to move towards the completion of a number of ongoing negotiations with potential partners and investors. It is also likely that, with the announcement of the dismissals, a number of previously silent observers will wish to become involved, as has already occurred.
With the paperwork finally in the bag, you would have thought that negotiations would be easy to seal, but here we are almost 5 months on and we have heard nothing! But in the full year results (released 31 March) it was indicated that it may take a little time, with the chairman (Christopher Egleton) commenting (then in the light of Greek media comments about the now confirmed permits):
the next twelve months are likely to be the most value enhancing in the Group's history.
That seems to look very positive � especially as we are now (almost) eight months on.
The interims carried a similar message � although (perhaps slightly worryingly) we were still being told that the forthcoming year looked set to be the transformational period.
Markets seem to have been pretty exuberant of late � oil companies valued on huge multiples of hope, the technology unicorns, house prices and all sorts of other outlets for people to lose money in the longer term.
But Minoan has stood adeptly aside from the madness. Its shares are valued at just �14.8 million (source: ADVFN). It also has secured lending from Hillside to the tune of �5 million and at its interims reported �14 million of current liabilities (including the Hillside loan). But that is still only c. �29 million and Cavo Sidero is expected to be worth as much as EUR100 million. Even half that figure would make Minoan look cheap � and then there is Minoan�s other business in travel and leisure, which Hotstockrockets reckons could be worth Minoan�s market c