(Panama Business News ) Grivalia buys into island project in Panama
Grivalia Properties’ Luxembourg-based subsidiary Grivalia Hospitality SA on Tuesday announced its first investment, which concerns the acquisition of a 60 percent stake in the
project in Pearl
from Dolphin Capital Investors. Panama
The agreed price is 27 million euros in cash, Grivalia stated, of which 1 million has already been disbursed as an advance payment, while another 24 million will be paid upon the completion of the transaction and the remaining 2 million will be deposited in an escrow account for a period of 12 months.
Dolphin Capital Investors Ltd said Tuesday it is selling its interest in a private island development off the coast of
at a loss. In addition, Dolphin Capital said it will sell the 60% interest in Panama
to Grivalia Hospitality SA for a cash payment of EUR27.0 million. Pearl
The implied enterprise value of the project of EUR63.0 million is a 32% discount to the carrying value of the asset as at June 30, 2016 and will result in an EUR27.0 million loss on the sale, said Dolphin Capital. The sale price is also a 7% discount on Dolphin Capital's EUR29.0 million cost of investment in the project.
The deal is dependent on a corporate restructuring of the project to allow Grivalia to own shares directly in the subsidiaries that own the project, as well as the consent of hotel operator Ritz Carlton and the project's senior lender Banistmo SA. Dolphin Capital said it expects these conditions to be met or waived by the end of March.
"The disposal of
in addition to those made of Aristo Developers and Playa Grande, further
underpins our commitment to delivering value for shareholders," said
Andrew Coppel, chairman of Dolphin Capital. Pearl