Marfin steps into Cytrustees race

makes better offer than Bank of Cyprus

 

Marfin Popular Bank broadened the undeclared war now being waged with Bank of Cyprus by offering to buy a controlling stake in Cytrustees Investments Pcl (CYTR), which is the subject of a takeover bid by Bank of Cyprus.

Marfin surprised the market after Laiki Investments Pcl (LI), which is 59.28% controlled by MPB submitted the intention to bid for a 50% plus one share of Cytrustees at a far better price of EUR 2.43 per share, which is at an 8% premium to the improved bid submitted by Bank of Cyprus and at par with the “reasonable” price suggested by the CYTR Board for a deal to go through.

Initially, Bank of Cyprus had submitted a takeover bid seeking 50% plus one share of Cytrustees at EUR 2.20 per share when the net asset value of CYTR was EUR 2.60 per share, or a 15% discount to NAV.

By the time the offer was made and it arrived before the Cytrustees board, the company’s NAV had jumped to EUR 2.87, which led the CYTR Board to reject the offer and ask Bank of Cyprus to make a bid at the same 15% discount level, or EUR 2.43 per share, which is probably the reason why LI is making its offer at the stated price.

The Bank of Cyprus has a direct participation of 2.74% in the share capital of CYTR and an indirect participation of 6.95% through its wholly owned subsidiary Eurolife Ltd. The second largest shareholder remains Universal Life Insurance Ltd with 21.4% participation.