ECONOMY

Sykaris takes over company

Consumer electrical product retailer Sykaris expects to boost its market share to 6 to 6.5 percent following its takeover of Eikona Ihos Southern Greece for 800,000 euros. Announcing the acquisition of the company, which holds an 89 percent stake in same-name rival consumer electrical product retail network Eikona Ihos (see Images & Sound for stock reference on Page 4) yesterday, Managing Director Anthony Sykaris said the enlarged chain projects a 2 to 2.5 percent boost in its market share of the retail market. The acquisition, in which Sykaris also assumes Eikona Ihos’s debts of 13.6 million euros, is expected to be completed by next month. The takeover was preceded by a 5.4-million-euro capital increase at Eikona Ihos. Eikona Ihos had losses slightly below 6 million euros last year against turnover of 16.9 million euros. Sykaris said the price paid for Eikona Ihos «is a satisfactory price under the present circumstances and represents about 70 percent of its book value.» The acquisition is also expected to increase Sykaris sales by 17 million euros and its network of stores in the Attica region by seven to 25. «Eikona Ihos stores will complement our network as we don’t have outlets in the same areas,» Sykaris said. He said the chain plans to open three new stores in Attica this year and intends to expand outside of the region by the end of the year. It presently has a branch in Tripolis. Sykaris is projecting turnover of 74.83 million euros and profits of 1.79 million euros this year. It is still waiting for approval from Athens bourse authorities for its flotation. Assessing the local retail market, Sykaris said the aggressive price war in recent years instigated by the entry of large complexes constituted the biggest problem for the sector.