Nicosia, Cyprus. Cypriot business conglomerate Laiko Group will proceed with a corporate restructuring to dissolve Laiko Holdings Public Ltd and absorb it into Laiko Kafekopteio Public Ltd, according to a plan published in the Official Gazette earlier this month.
Restructuring plan and ownership changes
According to the plan, following a share exchange, Laiko Kafekopteio will become the sole shareholder of LOEL Public Company Ltd, unifying the group’s structure under a single entity. Under the reorganisation, Laiko Kafekopteio will absorb Laiko Holdings in exchange for the allocation of shares to Laiko Holdings shareholders.
Approval process and meeting schedule
To approve the process, separate meetings will be held for creditors and members of each company. Creditors are scheduled to convene on March 17 at 3pm and the general meeting of members on March 19 at 3pm, both at the group’s headquarters.
Stated aims and creditor protections
According to the notification, the restructuring aims to enable smoother management of operations and subsidiaries while reducing operating and administrative costs. The plan states there will be no change in the rights and obligations of creditors, as all liabilities of Laiko Holdings will be assumed by Laiko Kafekopteio without modification.
Group background and rationale
The Laiko group was established in 2002 through the consolidation of Laiko Kafekopteio, Loel and Printco together with their subsidiaries, creating one of the largest food and beverage groups in Cyprus. Its portfolio includes traditional Cypriot coffee, also called Kafe Laikou, Elcafe iced coffee, Zivana Loel, Alasia commandaria, wines, spirits, confectionery products and the exclusive representation of GREE air conditioners.
In 2016, the group separated part of its activities through the creation of Laiko Holdings under the same shareholders, resulting in two organisational structures operating in parallel. According to the restructuring plan, maintaining the two structures no longer serves the group’s strategic objectives despite both remaining financially sound, with management considering reunification necessary to maximise future development prospects.
What do you think this restructuring could mean for Laiko Group’s operations and cost structure?
