LCL Buys Stake In Royal Olympic
Cyprus cruise operator Louis Cruise Lines has signed a deal to acquire a 51.4 percent controlling stake in Nasdaq-listed Royal Olympic Cruise Lines. The value of the agreement was not disclosed.
The deal will significantly boost Louis's share of the Mediterranean cruise market, bringing some 16 vessels under its management. Louis now owns seven vessels, and an eighth is under management. It has increasingly turned to out-chartering in recent years and has a dominant position in the eastern Mediterranean short-cruise market that it operates out of Limassol.
Royal Olympic operates eight vessels in the Mediterranean and in the United States. The Greek company is in the process of building another two vessels, the first due for delivery in June 2000 and the second in 2001.
The acquisition agreement will have to be ratified for currency control reasons by the Central Bank of Cyprus. It will also need approval by the boards of directors of both Louis and ROC and of Louis shareholders.