Lampsa Hellenic Hotels S.A. on Friday informed the Athens Stock Exchange (ATHEX) of an agreement with Greece-based Intracom for the latter’s participation, with a 25% stake, in a subsidiary of the latter, with the strategic intent aimed at both companies acquiring a bigger share of the Hyatt Regency Casino.
The specific casino remains the sole such gaming entity in the wider Athens-Piraeus area, hosted in an iconic 1960s resort hotel atop Mt Parnitha, which overlooks the Greek capital from the northwest.
Intrakom’s participation will come within the Cyprus-based subsidiary Selene Enterprises Company Ltd., for the acquisition – jointly – of 33.91% of shares (of Selene) now held by Greek systemic banks Alpha, Eurobank and National Bank of Greece (NBG).
The total consideration for the 33,91% stake in Hyatt Regency by the company jointly held by Lampsa and Intracom reaches 23 million euros, independent of loans worth 24 million euros. Nine million euros will be paid as a down payment. A second installment of eight million euros, however, will be disbursed when a relocation license for the Mt. Parnitha-based casino is finalized and a certain level of construction is completed at a new site.
The Regency Casino aims to relocate to a choice parcel of land along the north-south Kifissias Avenue, near the Athens Olympic Stadium and between two major shopping malls. A third installment of seven million euros will be disbursed after 18 months of operation of the casino at the new site.
Legal obstacles entailed in repeated lawsuits against the relocation by third parties, including motions to the Council of State (CoS) by a local municipality (Halandri) have plagued the project.