— USB insiders sell shares – Aspis buys, as Christophi calls on Georghiou to sell UL stake in USB
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The battle for control of Universal Bank (USB) took a new turn as company insiders have been selling hundreds of thousands of shares leading the bank’s main suitor, Aspis, to call on the major stake holders including Universal Life, Schoeller Holdings and Path Holdings to follow the example and also sell their stakes.
According to official filings of USB board members, senior executives and related parties, nearly 300.000 shares of USB were sold in the past two weeks at EUR 3.50 per share worth a total EUR 1 mln.
Some of the sellers include Andreas Georghiou, CEO of Universal Life who is involved in a bitter battle with Aspis for control of USB, members of the Photiades family, senior staff and other board members involving a dozen separate deals.
The insider selling led Aspis Holdings CEO Lambros Christophi to suggest that, “if they (Georghiou, board members and senior staff) are selling for their personal interest, then they should also proceed and sell the 9.99% stake of Universal Life to us (Aspis).â€
“If they don’t sell, then I’m sure that the Superintendent of Insurance, Victoria Natar will force them to do so, since you cannot have the CEO selling his personal holdings but not doing so for the company, which is a public organization with shareholders,†Christophi told the Financial Mirror. He added that Schoeller and Path should also be free to sell without fear.
Universal Life CEO Andreas Georghiou defended his and the USB board member action, telling the Financial Mirror that, “since the price is at unjustified and unreasonable levels, it’s only natural for us to sell our personal stakes to cover loans.â€
Georghiou pointed that the Aspis bid is two-and-half times above the USB book value and is not sustainable, which is why company insiders, who he said had purchased the USB shares in 2000/20001 at CYP 2.50 or EUR 4 per share are fully justified to sell their shares.
Asked by the Financial Mirror why the same strategy is not followed by UL, Georghiou said, “the UL stake is a long-term stake, which is why it will never be sold.†The same also applies to Schoeller and Path, according to Georghiou, who insists that none of the three will sell in order not to lose control of the bank.
News of USB insider selling however was not well received by investors since they saw it as a green light to sell as well, leading USB to score its highest volume on the CSE with Aspis snapping up the shares and in the process lifting its stake to above 11%.
In view of the fast changing developments, the CSE is most likely to give yet another extension to the takeover bids for USB, which is due to expire on May 10.
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— Marfin extends UL transfer option
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In another development for the Aspis Group, Christophi told the Financial Mirror that the Marfin Popular Bank Group has extended for a further month the option for Aspis to secure regulatory approval to buy the 35% stake in UL from MPB.
“We have until June 8 to secure regulatory approval and by the end of this week we intend to submit our appeal to the Finance Minister against the decision of the Superintendent of Insurance, Victoria Natar in blocking the transfer of the UL shares to Aspis,†said Christophi, who promised to reveal more details during a press conference this morning.
A confident Christophi nevertheless criticized Natar for her unjust decision to block the transfer saying that the action threatens to cost the Aspis Group, with more than 6.000 shareholders some CYP 14 mln in losses if the deal is not allowed to be completed.
“There is a personal vendetta against myself and Psomiades (Chairman of Aspis Group), otherwise, Natar could easily have allowed the transfer of the shares to be completed, so that it would not cost our shareholders any loss. But since she dislikes us, she could have stripped us of our voting rights and given a reasonable period, say 12 months, to dispose of the shares,†said Christophi.
Referring to developments in
