Mergers & Acquisitions (M&A) in Cyprus during the first nine months of the year showed a very modest increase to CYP 38 mln, at a time when M&A activity in the rest of the Europe jumped sharply higher, even surpassing those in the US.
In the first nine months of the year the total value of M&A involving Cyprus firms increased by 3.7% year-on-year to CYP 38.07 mln compared to CYP 36.7 mln a year ago in the same period, according to data compiled by the Financial Mirror. The first nine month figures of 2005 however, show a 17% decline from the CYP 45.9 mln deals transacted in the same period in 2003.
The Financial Mirror data shows that CYP 30 mln of the deals were financed in cash while CYP 8.06 mln involved equity swaps, compared to CYP 18.15 mln cash deals in the same period in 2004 and CYP 18.13 mln of equity financed deals.
By far the largest deal during the first nine months of 2005 was the 100% takeover of Chris Cash & Carry by Carrefour Marinopoulos, valued at CYP 21.6 mln in cash.
The second largest all-cash deal was the acquisition by Nassos Ktorides of the remaining 30% of Quantum Corp. that he did not own at CYP 250 per share in cash, in a deal estimated at CYP 3 mln.
Among the deals financed through debt/equity was the acquisition by SFS Group Public Co. subsidiary White Knight of a 51.9% stake in Lemissoler Shipping valued at CYP 4.7 mln.
The acquisition by Gerik Investments/A. Panayides of Pharmakas Quarrying in a combined cash and equity deal was valued at CYP 2.97 mln.
Brisk activity abroad
There was good sized M&A activity during the first nine months of the year abroad involving a Cypriot company or a stake owned by a Cypriot group.
The largest deal was the sale by Libra Holidays Group of the remaining 4.6% stake held in Excel Aviation to Air Atlanta for GBP 4.8 mln or CYP 4.4 mln in September.
During the same month, the Cyprus Development Bank also announced the sale of its 8.9% stake in Forthnet Greece to Novador of Ireland for CYP 5.5 mln in cash.
The total cash component of deals involving a Cypriot company abroad amounted to CYP 14.7 mln during the first nine months of the year.
The value of M&A deals may still climb during the last quarter if as expected the Greek insurer, Aspis Proina manages to wrest control of Universal Life Insurance Co. from Laiki and Bank of Cyprus in a deal valued at CYP 16.5 mln.
With Cyprus asset values currently depressed, there are hopes that M&A activity will rise, in line with rising trends in the rest of Europe which saw a spectacular increase in deal activity this year.
In the third quarter, Thomson Financial announced transactions involving any European buyer or seller totaled $312.8 bln, an 84% jump on the $170.3 bln recorded in the year-earlier quarter.
The rise has even outpaced the U.S., where third-quarter deal values stand at $259.8 bln.
For the first nine months, announced M&A transactions in Europe stood at $805 bln.
