USB Board backs Schoeller & Path bid

The Board of Directors of Universal Bank Public Ltd (USB) announced that it recommends shareholders to accept the public offer on behalf of the Companies ‘Schoeller Holdings Ltd’ and ‘Path Holdings Ltd’ for the acquisition of 41% to 50.99% of the issued share capital of USB for CYP0.90/USB share in cash.

According to the announcement, the BoD of USB estimates that the offer price is reasonable and fair and also believes that given the bidders’ business activities, USB has growth prospects via the development of specialized products which will target specific customer categories. Further to this, the BoD gave attention to the bidders’ commitment to cooperate with USB for the increase of the Bank’s share capital by CYP 4.0 mln via a rights issue. Given that the Cyprus Central Bank has given permission to Schoeller Holdings Ltd’ and ‘Path Holdings Ltd’, and their commitment to ensure the success of the rights issue by exercising those rights that will not be exercised by the rest of the shareholders, the Board has decided to back the offer. There was no comment on the renewed and improved public offer bid submitted by Aspis SA and Commercial Value seeking a minimum 20% stake in the Bank at CYP 1.10 or EUR 1.90 per share from their previous offer of CYP 0.95 or EUR 1.65 per share, which was previously flatly rejected by the Board of Universal Bank.