Cypriot business conglomerate Laiko Group will proceed with a corporate restructuring that will dissolve Laiko Holdings Public Ltd and absorb it into Laiko Kafekopteio Public Ltd, according to the restructuring plan published in the Official Gazette earlier this month.

According to the plan, following a share exchange, Laiko Kafekopteio will also become the sole shareholder of LOEL Public Company Ltd, effectively unifying the group’s structure under a single entity.

To approve the process, the group will hold separate meetings for creditors and members of each company, with creditors scheduled to convene on March 17 at 3pm and the general meeting of members on March 19 at 3pm, both at the group’s headquarters.

According to the notification, the restructuring aims at smoother management of operations and subsidiaries, while reducing operating and administrative costs.

The plan clarifies that there will be no change in the rights and obligations of creditors, as all liabilities of Laiko Holdings will be assumed by Laiko Kafekopteio without modification.

The Laiko group was established in 2002 through the consolidation of Laiko Kafekopteio, Loel and Printco together with their subsidiaries, creating one of the largest food and beverage groups in Cyprus.

Its portfolio includes traditional Cypriot coffee, also called Kafe Laikou, Elcafe iced coffee, Zivana Loel, Alasia commandaria, wines, spirits, confectionery products and the exclusive representation of GREE air conditioners.

In 2016, the group separated part of its activities through the creation of Laiko Holdings under the same shareholders, resulting in two organisational structures operating in parallel.

According to the restructuring plan, maintaining the two structures no longer serves the group’s strategic objectives despite both remaining financially sound, with management considering reunification necessary to maximise future development prospects.

Under the reorganisation, Laiko Kafekopteio will absorb Laiko Holdings in exchange for the allocation of shares to Laiko Holdings shareholders.

At the same time, its participation in Loel will increase from approximately 86 per cent to 100 per cent, also through the allocation of shares to minority shareholders.