EAC Fund shortfall rocks sentiment

Investor sentiment took a fresh dive and have a mild negative impact on the CSE after reports emerged of a CYP 9.2 mln shortfall in the value of

the Electricity Authority of Cyprus’ (EAC) Provident Fund managed by the Suphire Group.

The shortfall appears in the number of shares owned by the Provident Fund as stated by the Asset Managers’ Report (Suphire) compared to that recorded at the CSE’s Central Depository.

Press reports stipulate that the Attorney General will meet with the management of EAC today to decide on whether or not to press criminal charges. At the same time the Cyprus Securities Exchange Commission will commence an investigation regarding the issue.

Reports also suggest that the owners of Suphire, Yiannis and Rea Andronicou have pledged additional assets, including real estate holdings and other shares to the EAC and given a pledge that the shortfall will be covered by April 15, but it is not clear if the offer for additional securities will be taken into consideration by the authorities investigating the case.