Orco agrees to sell Russian properties for €53 mln
Orco Property Group, listed on the Budapest Stock Exchange, on Wednesday said it agreed to sell its assets in Russia for €53 million pursuant to a restructuring strategy.
The properties in the deal are valued at about €57 million, but the sales agreement contains a provision entitling Orco to a percentage of future sales which "should result in Orco reaching or exceeding the existing valuation", the company said.
The deal should be closed in September. Orco expects to get €13.2 million from the transaction by the end of 2011, with the balance to be paid in 2012.
"We continue to implement our strategy to focus on our four core cities of Prague, Berlin, Warsaw and Budapest," Orco said.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.