Dutch property company Uni-Invest is backing a £19m reverse takeover by Probus Estates of a company which owns a Majorcan casino with consent for a hotel on its site.
The company, Casino de Mallorca, owns a cliff-top resort about 20km (12 miles) from the island’s capital Palma. The 20-year-old resort near the town of Calvia has a casino, restaurants and beach club and 50,000 sq m (538,213 sq ft) of land with planning approval for a new hotel.
Larmag Securities, a company controlled by Probus chairman Lars-Erik Magnusson, is 14% shareholder in Casino de Mallorca. Larmag Securities will buy the remaining 86% with a loan provided by Uni-Invest before being acquired by Probus.
Probus will be investing £3.7m from its own resources, with the balance financed by an issue of shares and convertible loan stock.
Shares in Alternative Investment Market-listed Probus have been suspended at 5 1/4p.
EGi News 27/06/00
