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Newsletter December 2013


Dufry to Acquire Remaining 49% of Hellenic Duty Free Shops

Dufry has signed an agreement to acquire the remaining 49% equity stake of Hellenic Duty Free from Greece’s Folli Follie Group.

Dufry completed the acquisition of 51% of Hellenic Duty Free, Greece’s leading travel retailer, on April 22. Dufry will pay 328 million Euro through a combination of cash and shares for the balance of the holding.

Dufry said that the transaction will enable it to achieve additional synergies by further streamlining logistics and purchasing. The company will also refurbish and expand retail space in key Greek airports, including in Athens, Thessaloniki, Rhodes and Crete.

Hellenic Duty Free is the leading travel retailer in Greece, with 111 shops and over 18,000sq m of retail space within an ultra-long term concession portfolio. The business generates more than 80% of its turnover from international customers, led by Germans and British.

For the first nine months of 2013, international tourists increased by 10% year-on-year. For the period since the initial consolidation in April through to September 2013, the Hellenic operation has contributed CHF 274 million (US$ 308.7 million) in revenue to Dufry, which said it expects to achieve an incremental 10 million Euro synergies as a result of the full acquisition.

December 12, 2013

TUI Planning to Build Hotels on Crete, Rhodes

TUI Travel Plc, one of the biggest tour operators in the world is planning to start building two hotel units, on Rhodes and Crete.

TUI Travel Plc, one of the biggest tour operators in the world, informed the Greek government on October 17 that it is planning to bring 2 million visitors to the country next year, and it will also start building two hotel units, on Rhodes and Crete.

TUI head Peter Long explained the group’s investment plans for Greece to Prime Minister Antonis Samaras at a meeting in Athens. As Mr. Long stated after the meeting, “TUI Travel spends half a billion Euro every year on the service market in Greece’s tourism market. We will open new hotels on Rhodes and Crete and continue to support the local economy of Greek destinations.” TUI also expressed an interest in the privatisation of selected regional airports.

On tourism traffic, Mr. Long said that Greece is experiencing an impressive rebound in 2013, which is set to continue next year, announcing that TUI will increase the number of customers it brings to Greece by 10%, reaching up to 2 million.

Sources also said that Mr. Long asked the Prime Minister to suspend regional airport taxes at certain destinations during the off-peak months as an incentive that should help to extend the tourism season. That is an issue which Mr. Long had also discussed during his previous visit to Greece a month ago, when he met with the Vice Governor of the Southern Aegean Regional Authority, Eleftheria Ftaklaki. A task committee was set up to examine how this could apply in practice, starting with destinations such as Rhodes and Crete from next winter (2014-15).

Mr. Long also spoke about TUI and the Greek government cooperating on a joint advertising campaign for Greece as a holiday destination, an idea to which Athens reportedly responded positively.

October 18, 2013

Turkish-Greek Business Partnership
Turkey’s Yemek Sepeti has invested in Greece’s ClickDelivery, providing capital and expertise to the Greek company.

Yemek Sepeti, the largest online delivery platform in Turkey and which has a presence in the Middle East, signed the agreement with ClickDelivery, giving it a minority stake in the Greek company. The deal is valued at 3 million Euro.

Currently, cooperates with 650 restaurants in Athens, Thessaloniki, Larissa and Ioannina, and carries over 2,000 daily meals, serves over 40,000 customers, and has had a total of 300,000 orders. Nikolas Stefanou, Managing Director of ClickDelivery, said that, “the order is made within two minutes,” and added that “the cooperating companies use a special terminal provided by ClickDelivery which does not require access to the Internet.”

Yemek Sepeti, which developed rapidly and has become a multinational company, cooperates with 8,850 restaurants, serving 2.2 million customers and handles approximately 60,000 orders each day. Its explosive rise attracted a major investor, the American investment fund General Atlantic, which funded the company with 44 million dollars (32 million Euro) to expand abroad. In addition to Turkey, the company operates in Oman, Saudi Arabia, Lebanon, Qatar and the United Arab Emirates.

Mr. Stefanou and Nesvat Aydyn, Managing Director of Yemek Sepeti Aydyn, said that Yemek Sepeti is the best collaboration choice for ClickDelivery as both companies share the same vision of “changing the culture of online ordering.” Mr. Aydyn added that Yemek Sepeti is developing at a 60% rate, which offers enough capital adequacy to support and expand the dynamic of the online ordering market.

Yemek Sepeti is not planning on building its own brand in Greece, because ClickDelivery has “an excellent quality and it has proven that it is a powerful brand, it is a developing startup and despite the crisis, the Greek market shows possibilities for future growth” said Mr. Aydyn. 

The investment of 3 million Euro is just the first step and in the coming months the Turkish company will proceed to connect the information systems of the two companies, while in the new year the partnership will bring new services to the Greek market.

The delivery market in Greece is estimated to have revenues of between 300 and 500 million Euro per year. ClickDelivery is planning its expansion in the rest of Greece to gain sufficient market share in the next three years. Mr. Aydyn noted that in the next few years the percentage of consumers ordering online is expected to increase from 5% to 20%.


Foreign Funds in Athens
UBS, acting as a broker, accompanied more than 20 funds to Athens and scheduled meetings of foreign managers with Greek businesses. The funds are entirely focused on emerging markets and have expressed a keen interest in the Greek market, in light of its transition to emerging market status. Some of the visiting funds are Adelphi Capital, Esemplia, Argonaut, JP Morgan, Lupus Alpha, Neon Liberty, Marathon Asset Management, SW Mitchell Capital, York Capital, Stone Lion Capital, Pimco, Orange Capital, Gladstone Partners, Henderson, Hermitage Capital, East Capital, Centaurus, Renaissance AM, Q Capital, Sandglass Capital, Moore Capital, Lansdowne, Perry Capital, Millennium Capital Partners, and Wellington. 

Many of these funds participated in the ATHEX London roadshow earlier this fall.

November 7, 2013
(Source: RE+D Magazine)

New Initiatives for Solar Investments
The implementation of Ministerial Decision 41766 (published in the official Government Gazette on 15.10.2013) and the launch of a corresponding information system application, marks the beginning of a definitive resolution of issues that had been created regarding the inclusion, completion and launch of the function of investment plans related to the generation of electricity from solar energy up to 100kWp.

The selected procedure contributes instrumentally in dealing with bureaucracy by simplifying procedures and emphasising the urgent need to establish rapid management decisions.  

The public interest and transparency rules are fully ensured since the manner of funding and the control procedures of investment plans are now clearly defined.

The bodies to implement electricity generation investment plans are now, for the first time, equally responsible of the control procedures, for affirming the completeness and correctness of submitted components, and their adherence to standards set by law.

Deputy Minister of Development and Competitiveness Notis Mitarachi said: “The goal of the government and of the Ministry of Development and Competitiveness is to address all the outstanding issues regarding the implementation of investment plans. Today, we are taking an essential step toward that direction. At the same time, we are instituting simplification procedures that will effectively assist in the acceleration of procedures in combating bureaucracy, and assist in compliance with the rules on transparency to protect the public interest.”