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Increasing assets, improving profits
As a result of new acquisitions and reconstructions, increasing shareholders’ assets, further improving capacity utilisation and the moderation of cost increases, substantial increase in profits is reflected in the financial report covering the year 2000.
These were influenced by the following major events:
· In May 2000 we purchased 64.98% of Lecebne Lázné Rt. shares in Marienbad in the Czech Republic. The consolidated value of total assets was thus increased by the value of more than 30 properties including operating hotels and some houses up for reconstruction, spa houses, other tourist and health properties and the right for the use of medicinal springs. Pursuant to the Czech legal regulations our company made an offer for a part of the minority shares, as a result of which our interest increased to 90.06% by the end of the year. The assets acquired in Lecebne Lázné have been consolidated on fair values.
· 64.98% of the profits will be consolidated among the Danubius group profits from 31 May, 2000, 68.06% from 1 July and 90.06% from 1 December.
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The new share capital of the company HUF 8,285 million, changed by the conversion of employee shares into ordinary shares, was approved by the Court of Registration on 30 May, 2000. Based on a resolution made at the AGM held on 27 April, 2000 the subscribed capital was thus decreased by HUF 791 million alongside an equal increase of the capital reserves.
· The 285,437 pieces of ordinary shares newly issued after the conversion were introduced on the Budapest Stock Exchange on 7 August, 2000.
· We have established a foreign representation in Nuremberg, Germany in August by the merger of the offices in Stuttgart, Hannover, Nuremberg and Linz with the aim of driving local sales of the services of Hungarian and Czech spa hotels.
· In order to be able to ensure professional property protection and personal safety to our guests, our company acquired 51% shares in Preventív Security and Consulting Rt. This company does not only render the above-mentioned ser-vices but has also taken over the experts pursuing similar activities formerly in our company. Figures of the company are being consolidated from 5 July, 2000.
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