19th Aug 2022 19:27
(Alliance News) - Bank of Cyprus Holdings PLC on Friday confirmed its rejection of three non-binding takeover proposals from LSF XI Investments LLC, which is part of US private equity firm Lone Star Funds.
The Strovolos, Cyprus-headquartered financial services firm said that Lone Star's first proposal was made in early May, at a price of EUR1.25 per share. Following that offer's rejection, Lone Star made a second proposal in late May, increasing the price to EUR1.38 per share.
The third and final proposal was made in early July at EUR1.51 per share, which are careful consideration, Bank of Cyprus rejected on the grounds that the bid fundamentally undervalued the company.
Shares in Bank of Cyprus closed 9.1% higher at 103.00 pence on Friday in London, giving a market capitalisation of EUR578.9 million.
In addition, the bank said that the proposal did not adequately address the complexities of completing a transaction to acquire Bank of Cyprus, considering its "strategic importance" to the company.
Bank of Cyprus said it has received no further approach from Lone Star, which now has until the end of September to either make a firm offer for Bank of Cyprus of confirm that it will make no offer.
"The board is confident in the company's future prospects and remains committed to delivering its strategy of becoming a stronger, safer and a more focused institution capable of further supporting the recovery of the Cypriot economy. Bank of Cyprus updated its medium-term strategic targets in February 2022 and upgraded its expectations in May 2022. The board reiterates the guidance given in May 2022, including delivery of a return on tangible equity of greater than 10% in 2024 and, subject to performance and relevant approvals, a return to dividend distributions from 2023 onwards," the company stated.
By Dayo Laniyan; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
BOCH.L