The investment fund Lone Star, in a statement issued yesterday to the London Stock Exchange, stated that it is considering its options in relation to the possibility of submitting a revised offer for the acquisition of Bank of Cyprus.
The Board of Directors of the Bank of Cyprus has already rejected three offers from the investment fund, with the last offering 1,51 euros per share. The investment fund itself announced the submission of the non-binding offer on August 19.
"Following the rejection of the potential offer, Lone Star is considering its options in relation to the possibility of submitting a revised offer to the Board of the Bank of Cyprus," the announcement states, adding: "Lone Star recognizes the strategic importance of the company in Cyprus."
He notes that "a global investor with a strong track record of investments in the financial sector, including Germany's IKB Deutsche Industriebank AG and Portugal's Novo Banco SA, Lone Star takes seriously the preservation of strategic financial institutions as well as the advancement of businesses under ownership her".
Proposal based on Irish and not Cypriot law
Lone Star also clarifies that it has not finally decided to submit a revised final offer to the Board of Bank of Cyprus, but confirms that any revised offer proposal submitted will be for the acquisition of Bank of Cyprus through a scheme of arrangement of the Irish process and not on the basis of a takeover proposal as specified in the relevant Cypriot law of 2007.
It also clarifies that Lone Star has confirmed with the Cyprus Securities and Exchange Commission that a takeover transaction of Bank of Cyprus which will proceed through a reorganization plan will be subject exclusively to the jurisdiction of the Irish Takeover Panel under Irish takeover rules.
It is recalled that under Irish takeover rules Lone Star is required by no later than 17:00 (Irish time) on 30 September either to announce its intention to submit its final offer or to notify that it does not intend to do so. The timetable may be extended by the Irish Takeover Board.
"There is no certainty that any formal takeover bid for Bank of Cyprus will be made or the terms on which any bid will be made public," concludes Lone Star.
Source: KYPE