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Avis Europe sells in Greece May 2, 2007

Posted by grhomeboy in Business & Economy.
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Avis Europe PLC said it has agreed to sell and franchise its non-core long term rental business in Greece to Piraeus Bank for 25.5 million euros in cash and 190 million euros debt transfer. Completion is expected in two to three months.

The vehicle rental company said it expects the disposal to be earnings dilutive in the short term while the transaction is expected to improve both margins and return on capital employed in the medium term.

The company said the sale will incur a pre-tax exceptional loss of about 5 million euros adding the proceeds will be used to reduce its debt and fund further growth.

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