Dolphin buys 100% of Aristo

Dolphin Capital Investors has taken its stake in Cyprus residential developer Aristo Developers from 85 percent to 100 percent following a decision by the founder of the firm to sell his stake. It will cost Dolphin €50m in cash and the rest of the €92.7 million payment in Dolphin shares.

Dolphin Capital Investors, the London-listed South East Europe company managed by private equity real estate firm Dolphin Capital Partners, is increasing its stake in Aristo Developers from 85 percent to 100 percent.

Dolphin will pay €50 million in cash and another €42.7 million in Dolphin shares to Aristo founder, Theodoros Aristodemou.

The transaction has been triggered by the exercise of a put option at the end of a two –year lock up period following the takeover by Dolphin in 2007 of Aristo, enabling Aristodemou to sell his remaining share of the business. 

Dolphin said in a statement that it had reached an agreement to vary the terms of the put option, so that instead of paying €92.7 million in cash it could pay €50 million cash and the rest in Dolphin shares. The transaction will mean Aristodemou increases his stake in Dolphin from 18 to 35 percent. He will remain as managing director at Aristo for at least two years, added the firm. 

The move has happened as Aristo responds to the weaker property market by cutting costs and limiting expenditure linked to certain developments.

It has also restructured its various loan agreements by extending their maturity and principal repayment schedules, by cutting overheads by 30 percent as well as by putting a freeze on new investments and halting non-pre-sold construction activity.