Merchants House, Bristol
United Kingdom
Sale Agreement
Industrial Area of Kilkis 16/02/2006
According to the provisions of Article 10 par. 1 of Law 3340/2005, decision 3/347/12-07-2005 of the Hellenic Capital Market Commission, Article 276 of the Regulation of the Athens Stock Exchange and decision No 202 of its Board of Directors, the company Kleemann Hellas SA notifies that, on Thursday, 16 of February 2006, signed an agreement for the sale of the (2) two owned company shares, with a total par value of 500.000,00 Euros representing 50,00% of the capital of the company "Leistritz Hydraulik GmbH", with a total exchange value of 255.500,00 Euros. The above sale was effected towards the other partner, "Leistritz AG".
The above exchange value of 255.500,00 Euros will be paid by the buyer at the latest until the end of 2007. Further to the above exchange value, an amount of 769.760,82 Euros, paid by this company to the company "Leistritz Hydraulik GmbH" as a long-term loan in order to meet its cash needs, will be returned by the buyer to Kleemann Hellas SA.
It is noted that the Company Kleemann Hellas SA had purchased the above company shares of "Leistritz Hydraulik GmbH" representing a share of 50,00% of its company capital, from "Leistritz AG" on the 15th of October 2001 and the value of these at the records of Kleemann Hellas SA according to the IFRS amount at 31/12/2005 to 635.687,00 Euros.
Furthermore, the intent of both companies "Kleemann Hellas SA" and "Leistritz AG" (buyer) to continue their co-operation in the future for their common benefit is stated in the signed contract. Accordingly, the commercial co-operation of Kleemann Hellas SA with Leistritz Hydraulik GmbH will also continue.
The above solution was chosen as the most advantageous for the company, since the company considers that there is not any prospect of a financial upturn and profitability of Leistritz Hydraulik GmbH that operates in an inflexible business and work environment.
The management of the company is convinced, that the exit from the loss-making investment will have beneficial results for the growth of the group, since it will stop financing the cash needs of Leistritz Hydraulik GmbH and hence the funds of the company will move towards new business initiatives for development.
