Last checked at 18 Nov 2009 07:00
18 November 2009
Minoan Group Plc
("Minoan" or "the Company")
Acquisition of Solar Energy Licences;
Board Changes
Minoan Group Plc, the AIM-quoted leisure resort developer, is pleased to announce that it has agreed terms to acquire licences to develop two solar energy projects in Greece. These acquisitions will represent the Company's first development of a planned expansion into the Greek solar energy sector, a market with compelling cash-generation characteristics.
The overall cost of these initial projects will be in the region of Euro 800,000, and it is envisaged that funding for this development will be provided from a mixture of equity and debt.
The Company also announces that it is in substantive discussions regarding a number of potential additional transactions both in Minoan's core leisure business and in its newly established solar energy operations. It expects to be in a position to notify the market of further progress on these potential transactions in due course.
As a necessary prelude to these developments, the Company also announces today that it is embarking on a restructuring of its executive management team, beginning with the appointment of Duncan Wilson as Managing Director. Duncan has been a Non Executive Director of Minoan since 2006 and is an internationally recognised figure in the global travel and leisure marketplace.
Acquisition Details
The licence acquisitions are in line with Minoan's previously stated strategy of developing its activities in Greece and exploring opportunities to add new, compatible operations to support its Cavo Sidero Project. The opportunity to develop a meaningful presence in one of Europe's most exciting renewable energy markets has come about as a direct result of Minoan's extensive experience and contact base in Greece. The solar projects will provide recurring cashflow for Minoan as well as further strengthening the Company's environmental credentials. In due course, these two licences will each produce just under 100 kilowatts of power and represent the first step in a series of planned acquisitions. The licences will be held in a subsidiary.
The solar energy business in Greece produces a stable overall return and cashflow through contracts with the Greek National Grid on 20-year index linked supply contracts. Minoan envisages that this business could grow substantially by the acquisition of further licences.
Minoan is also currently examining a number of opportunities in the travel and leisure business in both the UK and Europe. The nature of the businesses being investigated means that they will provide strong cashflows and profit growth. It is Minoan's intention that such businesses will be acquired through separate subsidiaries with other partners so as not to dilute the underlying value of the Cavo Sidero Project for existing shareholders.
Board Changes
The Board is delighted to announce that Duncan Wilson has become Managing Director of Minoan with effect from 17 November 2009. Duncan is a travel professional with over 25 years experience and an in-depth knowledge of the leisure industry. He has a wealth of knowledge that makes him well placed to help drive the business forward on a number of fronts.
Following Duncan's appointment, Operations Director Tim Hill, who joined the Company in 1993, has become a Non-Executive Director with effect from 17 November 2009. Tim was formerly a Director of the Project Management Division of WT Partnership, one of the world's largest quantity surveying and project management companies (which provides services to Minoan). His knowledge and extensive experience of Greece will continue to be utilised in his new role as Non Executive Director. Geoffrey Brown, Project Director has left the Board with effect from 17 November 2009 in order to concentrate on his private interests. His considerable expertise will remain available to the Company when required.
Minoan Chairman, Christopher Egleton commented:
"We are delighted to be developing the Company in line with our previously stated strategy of investing in other business opportunities. The solar licences begin to provide an exciting new dimension to the Company and the income generated will help us to move the Cavo Sidero Project, which remains our main focus, to fruition.
Greece recently elected a new Government with a large majority. The new Government has stated that Foreign Investment is a priority in all sectors. It has also stated that Green investment will be a priority.
The Cavo Sidero Project has extremely strong environmental credentials using 'best practice' wherever possible. The combination of Cavo Sidero and renewable energy represents compelling business and environmental logic.
The restructured Board will drive Minoan forward on both fronts and will look for further opportunities to create additional value and cashflow for the Company whilst retaining the underlying value of Cavo Sidero. We look forward to notifying the market of progress in due course and are hopeful of announcing further significant transactions in the coming months."
For further information visit www.minoangroup.com or contact:
Christopher Egleton Minoan Group Plc 07808 722022
Bill Cole Minoan Group Plc 01689 897397
Nicola Marrin Seymour Pierce Limited 020 7107 8000
Leo Godsall/Monisha Varadan Rivington Street Corporate Finance Ltd 020 7562 3393
Nick Rome/Gemma O'Hara Bishopsgate Communications Ltd 020 7562 3350