TIDMMIN
RNS Number : 6488C
Minoan Group PLC
18 November 2009
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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 EgletonMinoan Group Plc07808 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
This information is provided by RNS
The company news service from the London Stock Exchange
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