Cytrustees tells Bank of Cyprus to improve offer

The Board of Directors of Cytrustees Investments Pcl (CYTR), after evaluating the bid proposal submitted by Bank of Cyprus Pcl (BOCY), seeking a minimum 50% of the company at EUR 2.20 per share in cash, has said that the offer should be improved to at least EUR 2.47 per share based on the recent improvement in the net asset value of the company.

The Board of Cytrustees noted that at the time when the takeover bid was made by Bank of Cyprus on December 12, 2006, the net asset value (NAV) was EUR 2.60, yet BOCY made its takeover bid at EUR 2.20, or a 15% discount, which however was better than the trades price at the time.

In view of the fact that since the offer was made and until the time that it received permission from the stock exchange authorities to be circulated, January 3, the NAV has in the meantime improved further and as at January 15, 2007 was at EUR 2.9050.

Since the Board of Cytrustees considers that the 15% discount to NAV is fair, it is recommending that Bank of Cyprus improve its offer to 15% discount to the current NAV, or to EUR 2.4692 per share.