MINOAN saw shares climb more than 30 per cent yesterday after revealing it had been approached about selling a “significant” stake in its Crete development.
The AIM-listed group also reported that it has signed an exclusivity agreement with the preferred buyer of its travel and leisure business and due diligence is underway.
The sale will leave Minoan free to concentrate fully on its perennially delayed Itanos Gaia resort on the Greek island, which last June was given final planning consent after more than a decade of delays.
Minoan has appointed an experienced corporate advisor with an understanding of Greece to assist in the process.
In parallel with this appointment, additional detailed site studies have been commissioned. These, the group said, are ongoing and will hasten the progress of the project and enhance its current value.
In a trading update, Minoan said: “The company has recently received an approach from a credible party which has expressed an interest in acquiring a significant stake in the project. Discussions are at an early stage and the company will provide shareholders with an update in due course.”
Ahead of publishing its full-year results later this month, Minoan said trading for the travel and leisure division for the first fiscal quarter was up 15 per cent.
In December, Minoan abandoned plans to raise £1 million through a broker offer after it failed to generate enough interest from investors.
The group said yesterday that with the current share price offering a 70% discount on its last published net asset value of £43m debt funding was preferable to a share issue for funding.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here