**CPI Holdings Sells Debt CPI Bulgaria in Strategic Move**
CPI Holdings Public Limited announced on Thursday the sale of its entire stake in Debt CPI Bulgaria ADSIC, marking a significant strategic decision for the company. This announcement was made through a supplementary statement to the Cyprus Stock Exchange (CSE), following an initial disclosure on June 9, 2026.
The transaction involves the disposal of 650,000 ordinary registered dematerialised shares, which represent the full share capital of the Bulgarian subsidiary. CPI Holdings described this sale as part of its routine investment cycle, which typically includes identifying, acquiring, holding, and eventually selling companies or controlling stakes for profit.
The board of CPI Holdings characterized Debt CPI Bulgaria as a non-core asset that had been underperforming. The subsidiary, structured as a special purpose vehicle, was licensed by the Bulgarian Financial Supervision Commission for activities related to receivables collection and trading. The decision to divest was made after a standard holding period, with the aim of realizing the appreciated value of the investment. Notably, the company stated that no external advisers were involved in the decision-making process for the sale.
Originally, CPI Holdings acquired full ownership of Debt CPI Bulgaria on October 5, 2024, through two over-the-counter transactions facilitated by Sofia International Securities AD, a licensed intermediary in Bulgaria. The shares were purchased at a price of 0.0683 Bulgarian lev each, totaling approximately €22,700.
Financial data as of October 31, 2024, indicated that the investment was recorded at zero fair value on a mark-to-market basis, reflecting a lack of material net asset value or significant earnings from the subsidiary. During its holding period, Debt CPI Bulgaria did not generate notable revenue or profit, and its value was primarily linked to its status as a listed company and its regulatory license.
The sale was agreed upon for a total cash consideration of €66,300, which translates to €0.102 per share. The settlement was executed on a delivery versus payment basis, adhering to a T+2 cycle through licensed intermediaries, with the final transfer completed via the Bulgarian Central Depository AD.
CPI Holdings anticipates a disposal gain ranging from approximately €43,600 to €66,300, depending on the accounting carrying value at the time of completion, prior to transaction costs and any adjustments for exchange rates. Under the International Financial Reporting Standards (IFRS), this transaction will be recorded as a gain on the disposal of a subsidiary, with any discrepancies between the proceeds and net asset value reflected in the consolidated income statement for the fiscal year ending December 31, 2026.
The company also stated that it does not expect any capital gains tax liability in Cyprus as a result of this transaction. The buyer, identified as FIN COLLECTION HUB AD, is a Bulgarian company based in Sofia. The transaction was conducted on an arm's length basis, with CPI confirming that none of its directors, secretary, or related parties had any direct or indirect interest in the counterparty or the deal.
CPI Holdings conveyed that the sale is not anticipated to significantly impact its overall financial position or its ability to continue as a going concern. However, it is expected to have a modest positive effect on the company's results for 2026 and will support future reinvestment as part of its acquisition strategy.
In compliance with EU Market Abuse Regulation disclosure requirements, CPI Holdings affirmed that all relevant inside information had been disclosed and that no trading occurred while unpublished information was held. This move reflects the company's ongoing commitment to optimizing its portfolio and enhancing shareholder value through strategic divestments and reinvestments.