Snoras fails to submit bid for USB

The Lithuanian AB Bankas Snoras did not submit a Public Offer document for the acquisition of a minimum 52% and a maximum 55% of Universal Savings Bank (USB) at a consideration price of CYP 0.90 cent per share, as stipulated by the M&A law the CSE announced on February 24.

The CSE said that Snoras had a 14-day deadline according to buyout laws to submit an official bid after announcing on February 3 that it intended to make an offer for USB.

The Lithuanian Bank has said that the reason why it did not submit the bid is because it failed to obtain the relevant permits from the Central Bank of Cyprus, according to which its bid, if successful would not meet opposition from the Central Bank. The CSE said that the Cyprus SEC is investigating the matter.

The Snoras bid was an improved offer compared to the agreement reached between Universal Life Insurance Co. and the German owned Scholler and Path Holdings (the potential buyers) who reached a preliminary agreement with Universal Life (UL) for the safeguarding of a minimum of 52% stake in USB’s share capital. The agreement will be finalised following a due-diligence process which will be subject to approval by the Central Bank of Cyprus.