Aspis Group SA of Greece, which will submit a public takeover bid seeking control of MFS Holdings Pcl aims to buy more Cyprus companies from the insurance and banking sectors, according to Aspis President Pavlos Psomiades.
Speaking at a joint press conference with Lambros Christophi, the Chairman of MFS Holdings, Psomiades said that the Aspis Group wish to strengthen their presence in Cyprus, and then use the island as a springboard for further expansion into Egypt and Jordan.
The Aspis Group aim to provide services in the life insurance, general insurance, banking, and financial services sectors as well as mutual funds, leasing and real estate.
“We are now in the process of buying MFS, which will give us control of Liberty Life Insurance Pcl, after which, we shall merge Liberty with Aspis Pronia Cyprus Ltd. We hope that by the end of the year, this will become a three-way insurance merger,” said Psomiades, hinting his interest to renew his bid to acquire Universal Life Insurance Group.
“We are still interested in Universal,” Psomiades said, who in response to a question by the Financial Mirror believes that his expansion drive into Cyprus is seen as a welcome development by the Cypriot authorities.
The acquisition of MFS and in turn Liberty is subject to approval by the Cyprus Superintendent of Insurance, who previously has blocked merger and takeover attempts by the MFS Group and raised a number of questions regarding the attempt by Aspis to acquire Universal Life, which failed to proceed.
Seeking a bank
Psomiades also added that Aspis Bank is seeking to buy a Cypriot bank, adding that if none is found, then Aspis Bank, which since 2001 is engaged in commercial banking activities will open a branch in Cyprus.
“I understand that the concept of bankassurance in Cyprus is very well developed, which is why Aspis Bank should also have a presence in Cyprus.”
Psomiades said the Group has made 11 insurance and 2 banking takeovers, so he realises and understands that this is a difficult task, which sometimes leads to problems, but provided there is a will, he said he is sure the right partners will be found.
Aspis has bid 30 cent cash to acquire 50% plus one share of MFS in a deal valued at CYP 4.5 mln, including the 17.39 mln issued shares of MFS and the 12.5 mln shares that are not listed on the CSE.
MFS Chairman Lambros Christophi refused to provide details as to who purchased the 12.5 mln shares and how the payment for the shares were made.
“I paid cash at 40 cent per share, but others acquired the shares through the exchange of assets like property,” said Christophi, without elaborating who got shares in exchange for what.
