Hellenic to acquire stake in Turkish operators

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Hellenic Duty Free Shops announced today it expects to sign a preliminary agreement by early July 2002 to buy stakes of 60% each in two unnamed Turkish duty-free operators

The two Turkish companies have duty-free shops at six border crossings and at two ports in Turkey, generating a total annual turnover of Eur6.8m ($6.5m) and growing. The border business includes two locations on the Greek border, two with Bulgaria plus one each on the Iraq and Iran borders with Turkey. "This is a good opportunity and fits well with our step-by-step growth philosophy," said Hellenic.

TRW will report further news on this acquisition as it emerges.

In a separate development Hellenic Duty Free is also aiming to sign a contract with the Greek Royal Olympic Cruises to set up a retail joint venture operating onboard Royal Olympic's eleven vessels. Through the Hellenic Distribution subsidiary, Hellenic has long-standing experience of operating on Greek domestic ferries. "We will start with one cruiseship and extend the cooperation to another ten. We are also considering creating a joint venture company to exploit the onboard cruise market," said Hellenic. The 50:50 venture will comprise of the cruiseline providing the retail space with retail know-how and an improved assortment from Hellenic.

Meanwhile financial bidding for the 40% to 60% stake in Hellenic being sold by Agricultural Bank of Greece is about to close; interested parties having been through the questioning process which concluded in a series of management meetings.

In the first five months of 2002 Hellenic reported its sales rose 10.6% year-on-year despite the negative influence of strikes, September's terrorist attacks, a short-term downturn in the German inbound tourism market and bad weather in January and February which closed Greek airports and border stations for several days.