CPI Holdings Public Limited on Thursday issued a supplementary announcement to the Cyprus Stock Exchange (CSE) regarding the sale of its 100 per cent stake in Debt CPI Bulgaria ADSIC, following its earlier disclosure dated June 9, 2026.

The company said the update relates to the disposal of 650,000 ordinary registered dematerialised shares, representing the entire share capital of the Bulgarian entity, and is provided in accordance with Cyprus Stock Exchange regulations.

CPI Holdings explained that its core business model is based on identifying, acquiring, holding and later selling companies or controlling stakes for profit, describing the transaction as part of its ordinary investment cycle.

The firm said the Bulgarian subsidiary was a non-core, underperforming asset structured as a special purpose vehicle and licensed by the Bulgarian Financial Supervision Commission for receivables collection and trading activities.

The board said the decision to divest followed a standard holding period and was taken to realise appreciated investment value, adding that no external advisers were involved in the decision to sell.

The target company, formerly known as Lev Invest ADSIC, is headquartered in Sofia and is listed on the Bulgarian Stock Exchange, with its structure based on 650,000 issued shares and a regulated investment licence.

CPI Holdings acquired full ownership on October 5, 2024 through two over-the-counter transactions executed via Sofia International Securities AD, a licensed Bulgarian intermediary, at a purchase price of 0.0683 Bulgarian lev per share, amounting to approximately €22,700.

According to financial information as of October 31, 2024, the investment was carried at zero fair value on a mark-to-market basis, reflecting the absence of material net asset value or meaningful earnings from the subsidiary.

The company said the Bulgarian entity had not generated significant revenue or profit during the holding period and had no substantive operations, with its value primarily derived from its listed status and regulatory licence.

CPI Holdings confirmed that the sale was agreed for a total consideration of €66,300 in cash, equating to €0.102 per share, with settlement carried out on a delivery versus payment basis under a T+2 cycle through licensed intermediaries and final transfer completed via the Bulgarian Central Depository AD.

The company expects a disposal gain of approximately €43,600 to €66,300, depending on the accounting carrying value at the time of completion, before transaction costs and exchange rate adjustments.

It added that under its IFRS treatment, the transaction will be recorded as a gain on disposal of a subsidiary under IFRS 10, with any differences between proceeds and net asset value recognised in the consolidated income statement for the year ending December 31, 2026.

CPI Holdings also stated that it expects no capital gains tax liability in Cyprus arising from the transaction.

The buyer has been identified as FIN COLLECTION HUB AD, a Bulgarian company based in Sofia, represented by Yulia Hristova Yurgakieva and Viktor Kirilov Baramov, with CPI confirming that the deal was conducted on an arm’s length basis between independent parties.

The company said none of its directors, secretary or related parties had any direct or indirect interest in the counterparty or the transaction.

CPI Holdings added that the sale is not expected to have a material impact on its overall financial position or its ability to continue as a going concern, though it will contribute a modest positive effect on 2026 results and support future reinvestment under its acquisition strategy.

The board confirmed compliance with EU Market Abuse Regulation disclosure requirements, stating that all relevant inside information had been disclosed and no trading occurred while unpublished information was held.