The board of directors of the Agros Development Company ‘Proodos’ Public Ltd, which owns the Rodon hotel in Agros, has accepted the evaluation issued by PWC about its share price.

PWC had been commissioned to evaluate the offer by Balram Chainrai’s to buy 100 per cent of the company at €3 per share, a price that it found “fair and reasonable at the time the public offer was made.”

The board reviewed PwC’s comprehensive report on Monday and fully adopted the conclusions.  One was that the €3 per share was significantly above past market valuations, offering a 105 per cent premium over the closing price of €1.46 recorded on December 9, 2024.

Moreover, it was significantly higher than the average share price over the past 3, 6, and 12 months by 122 per cent, 134 per cent, and 139 per cent, respectively, reaching up to 146 per cent higher than the price indicators used by the Cyprus Securities and Exchange Commission (CySEC).

This offers shareholders a lucrative opportunity to liquidate their holdings in a stock that has experienced limited marketability, with trading volumes averaging just 0.29 per cent in the year leading up to the offer.

Additionally, the €3 offer not only aligns with, but slightly exceeds the Net Asset Value (NAV) range detailed in the company’s unaudited interim balance sheet as of 30 June 2024, which estimated NAV per share to be between €2.60 and €3.35.

Specifically, the offer reflects a goodwill of 31.8 per cent over the NAV per share from the unaudited results of June 2024 and 30.6 per cent from the audited results as of December 2023.

The board of directors advises shareholders to seek independent professional advice regarding their decision on the public offer.

This proposal by Balram Chainrai is intended as an option for shareholders and not a mandatory action, placing the ultimate decision-making responsibility on them.

PwC’s valuation employs the NAV method, widely recognised for its accuracy in financial assessments.

According to PwC, the proposed consideration of €3.00 per share falls within the NAV per share range, as outlined in the company’s restated balance sheet as of June 30, 2024, which is between €2.60 and €3.35.

Additionally, this proposed price is marginally higher than the average of this range, calculated at €2.97.

The adjustments primarily reflect the revaluation of the company’s properties at fair value, confirming the robustness of the proposed €3.00 per share.

This approach takes into consideration the asset value and the low liquidity and marketability of the shares, which have potentially undervalued the company in recent trading.

Thus, the offer provides an advantageous exit strategy for shareholders amidst challenging market conditions.