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12° Nicosia,
28 September, 2022
 

US-based Lone Star to revise offer for Bank Of Cyprus

Bank of Cyprus' board of directors has turned down three take-over offers from Lone Star in its bid to take over the bank

Source: CNA

US-based equity fund Lone Star said it is considering options with regard “to the possibility of making a revised offer proposal to the Board of the Bank of Cyprus.”

The Board of Bank of Cyprus, Cyprus’ largest lender, has turned down three take-over offers with the latest on June 16 providing for €1.51 per share with the Bank of Cyprus board rejecting it stating that the proposals “fundamentally undervalues the Company.”

“Following the rejection of the Possible Offer, Lone Star is considering its options with regard to the possibility of making a revised offer proposal to the Board of the Bank of Cyprus”, Lone Star said in a press release issued yesterday on London Stock Exchange.

Noting that it “recognizes the Company's strategic significance to Cyprus,” Lone Star added, “as a global investor with a strong track record of investing in the financial sector including Germany's IKB Deutsche Industriebank AG and Portugal's Novo Banco SA, Lone Star takes its custodianship of strategic financial institutions seriously as well as ensuring businesses flourish under its ownership.”

The Fund announced that it has not determined at this time to make a revised offer proposal to the Board of the Bank of Cyprus, pointing out that “if any revised offer proposal were to be made by it, it would be for the acquisition of Bank of Cyprus by a scheme of the arrangement, an Irish statutory procedure, and not by "takeover bid" as that term is defined under the Cypriot Takeover Bids Law of 2007 (Law 41(I)/2007).”

“Lone Star has confirmed with the Cyprus Securities and Exchange Commission that a transaction to acquire Bank of Cyprus which proceeds by way of a scheme of arrangement will be subject to the sole jurisdiction of the Irish Takeover Panel under the Irish Takeover Rules,” the press release added.

Under Rule 2.6(a) of the Irish Takeover Rules, Lone Star must, by no later than 5.00 p.m. on 30 September 2022, either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Rules or announce that it does not intend to make an offer, while the deadline could be extended with the consent of the Panel.

“There is no certainty that any formal, firm offer to acquire Bank of Cyprus will be made nor as to the terms on which any such offer might be made,” Lone Star added.

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Cyprus  |  banks

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