Snoras counter bids for Universal

The Lithuanian Bankas Snoras has expressed the interest to submit a counter bid seeking 52% to 55% of the share capital of the CSE listed Universal Bank Public Co. Ltd. at the price of 90 cent per share, which is at a significant premium compared to the offer made by a German shipping group.

The CSE rushed to suspend trading in the shares of USB following the counter bid in order to allow time for investors to learn of the improved offer for the Bank.

A week ago, the Board of Directors of Universal Life Public Co., which holds a controlling 61.06% of the share capital of Universal Bank announced that it had reached a deal with Schoeller Holdings Ltd and Path Holdings Ltd for the acquisition of the majority stake in the share capital of USB, subject to the interested buyers gaining permission from the Central Bank of Cyprus.

The Board of UL said that the final price agreed with the German shipping group will be calculated in relation to the net asset value of the Bank as at December 31, 2005, as this will be determined following a due diligence.

UL said it reserves the right to terminate the agreement if the share price is lower than 74 cents and the buyers reserve their right to terminate the agreement if the price is higher than 86 cents.

The UL board is now in a tight spot since it committed to back the deal in such a way so that Schoeller Holdings Ltd and Path Holdings Ltd. acquire at least 52% of the capital of USB.