by Nicolas Bornozis, Capital Link,Inc, www.capitallinkgreece.com
Greek stocks increased this week by 0.60% closing at 3271.78 points. The FTSE/ASE 20 Index decreased by 0.30% closing at 1824.27 while the FTSE/ASE 40 realized a gain of 4.23% ending the week at 2807.60 points. The FTSE/ASE small cap 80 Index increased this week by 3.66% closing on Friday at 500.35 points.
The local weekend press suggests that the government will consider further privatisations from September. In the list the press refers to Agricultural Bank, OTE and Emboriki Bank. The budget assumes privatisation revenues in 2005 of c. EUR 1.6 billion. Subject to the successful completion of these offerings we expect the target to be exceeded. Imerisia also speculates on a further placement of shares for PPC, but in our view this is not feasible to happen during 2005.
General strike took place in Greece
A general strike took place in Greece on the back of the Government’s moves towards further liberalization of labor relations. The moves were encouraged by the IMF aiming to enhance the efficiency of the local economy.
Greece’s Public Debt Management Agency sold €432 m. in T-bills, with the weighted average yield in 52-week T-bills at 2.06% as compared to 2.15% in the previous auction. The weighted average yield of the 26-week and 13-week T-bills has been settled at 2.06% and 2.12%.
Calling for new tax measures
State deficit could exceed 5% of GDP by end 2005, calling for new tax measures targeting to its reduction. New tax measures are considered for 2Q05 as well as 2006.
Ministry of Finance considering the securization of mature debt obligations
According to unconfirmed press reports, the Ministry of Finance is considering the securization of already mature debt obligations owed by businesses, amounting to around 3 billion euro. The Ministry is waiting for the approval of Eurostat to this approach.
Exports for the period January-May 2005 increased by 9.1% y-o-y
According to the National Statistics Service, exports for the period January-May 2005 increased by 9.1% y-o-y, while imports expanded 4.1% y-o-y, and the trade deficit rose by 2.1% y-o-y.
A multi-territorial licensing agreement has been signed between Lavipharm Laboratories, Inc., a U.S. based R&D company focusing on drug delivery, and Recordati, a European pharmaceutical company based in Italy. More specifically, with this agreement, Lavipharm Laboratories, a subsidiary of Lavipharm S.A., has licensed to Recordati the rights to market and distribute its new transdermal delivery system that contains the analgesic fentanyl. The licence territory includes Italy, Germany, France, Spain and the United Kingdom. This product, developed at Lavipharm’s in-house R&D facilities in the USA, is a small, thin and easy to adhere patch that relieves the patient from the suffering of intense pain. It is designed to deliver fentanyl through the skin for the management of moderate to severe pain for up to 3 days. “Every new collaboration that we sign confirms our perseverance to focus our efforts in the area of pharmaceutical technology and mainly in the Research and Development of innovative drug delivery systems. Our agreement with Recordati, an Italian pharmaceutical group with international operations, allows us to continue investing in the pharmaceutical research and to capitalise on its successful results”, noted Dr. Athanase Lavidas, Chairman and CEO of Lavipharm Group. “Pharmaceutical Research and Development is a long-term and expensive activity. Lavipharm is dedicated to pursue excellence in the R&D area in order to assure its financial success”, Dr. Lavidas concluded. Lavipharm, founded in 1911, is a pharmaceutical group dedicated in the development, production, marketing and distribution of pharmaceutical, dermocosmetic and healthcare products in Greece with a strong international presence. Lavipharm S.A., the mother company, is listed on the Athens Stock Exchange (ASE: LAVI). Lavipharm Laboratories, the Group’s research and development engine, is based in New Jersey, USA. For more information, visit Lavipharm’s website at www.lavipharm.com.
Thursday 28 July 2005, Frigoglass SA announces that it will release First Half 2005 results, under IFRS, on Tuesday, 9 August 2005. The results will be published in the Greek media and an announcement will be released to the Athens Stock Exchange and also posted on the company’s website: www.frigoglass.com Please contact Frigoglass directly if you wish to receive a copy of the results by email and are not currently on the company’s circulation list.
DELTA HOLDING S.A.
The Euro 390 mn debt restructuring and refinancing of Delta Group has been completed successfully. The refinancing of the Group took place through Delta Holding S.A. and has two parts: 1) Euro 190 mn was raised through a US Private Placement bond issue of 7 & 10 years tenor, which is the first one for a Greek borrower in the specific market and was substantially oversubscribed from the original size. 2) Euro 200 mn was raised through a 5 year syndicated bond loan placed in the Greek and European bank market. Bank of America was overall coordinator of the refinancing. Bank of America acted as sole agent on the USPP, in which 9 of the largest US institutional investors in the above market participated and two European – most of which are insurance companies. For the Euro 200 mn bond loan, Bank of America and Hypovereinsbank were MLAs and Joint Bookrunners and the other MLAs were EFG Eurobank, Alpha Bank, National Bank of Greece & Piraeus Bank. 14 Banks participated in total.
We wish to inform you that the number of shares that resulted from the re-investment of dividend for the year 2004, amounts to 2.396.809. A letter has been sent to each shareholder that accepted the option to re-invest the dividend, stating the exact number of shares allotted to him. Also, an application for the listing of the new shares has been submitted to the Cyprus Stock Exchange. Please note that after the listing of the above shares, the issued capital of the Bank will amount to 306.408.118 shares of £0,50 nominal value.