Lone star not keen on fourth bash in BoC takeover

Private equity firm Lone Star has not disclosed whether it plans to raise its €727 million takeover bid for Bank of Cyprus after a third cash offer was rejected by the board of the largest lender. Hmm.

Lone Star said in a statement to the London Stock Exchange over the weekend that it was “unsure if any offer will be made and the terms of any offer”.

US-based Lone Star, which invests globally in real estate, stocks, credit and other financial assets, said on Friday it had offered banks €1.51 ($1.52) per share.

The bank’s shares, which have risen about 12% so far this year, rose from 1.14 euros on Thursday and closed at around 1.25 euros on Monday.

Bank of Cyprus currently has a market capitalization of €524.3 million ($526.66 million), according to Refinitiv, a financial market data provider owned by the London Stock Exchange.

As Bank of Cyprus Holdings Plc was incorporated in Ireland in 2016 for the purpose of listing on the London Stock Exchange, Lone Star has until 30 September to submit a new proposal.

Meanwhile, Bank of Cyprus on Tuesday urged shareholders not to take action in a notice in a local newspaper.

Last Friday, Bank of Cyprus, in a statement to its supervisor, partly explained its reasons for rejecting Lone Star’s proposal and looked forward to the board’s ability and prospects to implement the group’s strategic objectives. He emphasized that the company is doing well and is generating significant returns for its shareholders. in the medium to long term.

News site Stockwatch quoted an official who confirmed the government did not want an investment fund to buy the country’s largest banking institution.

The Ministry of Finance is also preparing to submit to the National Assembly a bill on establishing a framework for managing foreign direct investment.

According to Stockwatch, the law incorporates relevant regulations issued by the EU on the management of foreign direct investment in member states into national law.

The majority of EU Member States have implemented this law since 2019.

This requires the government to determine whether foreign direct investment may affect the security and public order of the Republic of Cyprus and whether the companies planned for foreign direct investment are financial services or financial institutions. gives you the right to assess whether you are operating in the sensitive sector of .



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