USB rejects Aspis bid

The Board of Directors of Universal Bank Pcl (USB) rejected the public offer for the acquisition of a minimum of 50% plus one share and a maximum 60% of the issued share capital of the company, at a cash consideration of CYP 0.90 per share, by Aspis Pronia A.E.G.A. and ‘Commercial Value A.A.E.’.

The BoD considers that the cash consideration price of CYP 0.90 per share offered is fair and reasonable; however, the Board is concerned with the optimistic nature of the business plan as prepared by the ‘bidders’ and important parameters of the Bank as well as of the local banking sector have not been properly taken into account.

The fact that Universal Life Insurance Public Co., holding about 60% of the share capital of USB has rejected the bid was also taken into consideration, since for the USB Board, it was obvious that the bid did not have any chance of succeeding.

In another development, USB issued its 1H06 results posting a net profit of CYP 474.000

compared to a Loss of CYP 715.000 in 1H05. EPS was recorded at 3.1 cent. The improvement in profitability is attributed to an increase in organic revenues, with net interest income reaching CYP 3.1 mln vs. CYP 2.4 mln in 1H05.