MFS wants BOCY stake in Universal Life

MFS Holdings Pcl (MFS) has offered to acquire Bank of Cyprus’ (BOCY) 28% participation in the share capital of Universal Life Insurance Public Company Limited (UL), at a cash consideration of CYP 3.00 per share for a total consideration of CYP 11.3 mln.

Bank of Cyprus had agreed in July 2006 to sell the stake at CYP 2.10 to Universal Life Insurance CEO Andreas Georghiou and major shareholder Photiades Group, but the deal has not been finalised since it has not yet secured regulatory approval.

Bank of Cyprus sources have told newspapers that the deal, which expired end of December 2006 has been renewed automatically for another 3 months. If MFS manages to grab the stake, then together with the 35% acquired from Marfin Popular Bank it will become the biggest shareholder of Universal Life and will control also Universal Bank, which is 62% controlled by UL.

In another development, MFS acquired 51% of the share capital of Interalbanian Sh.a., a company incorporated in Albania, at a total consideration of EUR 2.2m. The acquisition is subject to approval from the Albanian authorities. Finally, the Company’s BoD will convene on 16 February 2007, to call an EGM for the purpose of increasing the Company’s share capital.

MFS further clarified that on January 10, 2007, two days prior to the expiration of the agreement between BOC and Andreas Georgiou team for the acquisition of UL at the price of CYP2,10 per share, it informed the Bank that it was willing to pay for the same shares the price of CYP2,50 per share in cash.
On  January 19, the Company sent a second letter to Bank of Cyprus requesting a meeting in order to make a considerably improved offer for the acquisition of the shares of Universal Life Insurance Public Co. Ltd without an answer. Despite that, on January 25, the Bank decided to give extension to the agreement with Andreas Georgiou team with an unknown time frame.
“When our Company offered to Marfin Popular Bank CYP3,00 per share for UL, we informed Bank of Cyprus, with a letter on January 30, that our offer had been improved and was CYP3.00 per share. Our offer is still considered and we have not yet received an answer,” said MFS.