Universal Bank Cyprus back in Aspis control in deal worth EUR 5 a share

Aspis SA and Commercial Value SA of Greece have regained majority control of Universal Bank, bringing to an end one of the longest takeover sagas ever played in the corporate history of Cyprus.

The German-owned shipping company, Schoeller, agreed to sell its 25.5% stake in Universal Bank to Aspis SA and Commercial Value SA at EUR 5.00 per share in cash, valuing the deal so far at EUR 19 mln. The new stake, in addition to the 4.3% already held by Aspis/Commercial Value means the combined stake of the Greek banking, insurance and financial group reaches 29.99%, the biggest in Cyprus’ fourth CSE-listed bank.

Schoeller, which together with Path Holdings of Adonis Papadopoulos (who recently led a group of high net-worth individuals to buy the Cyprus Development Bank from the government) had purchased the USB shares from Universal Life Public Insurance Co. Ltd., at EUR 1.56 per share, realising a large gain by selling that stake at EUR 5 per share.

Aspis/Commercial Value, which previously had acquired 22.18% of USB through a public tender at EUR 3.50, subsequently sold 9.6% of its holding to Intership and 6.6% to financier Pavlos Savvides (former Minister of Communications and former Chairman of CSE).

Informed sources told the Financial Mirror that the new owners of USB will attempt to orchestrate a smooth transition of control of the bank, including changes at board level with more share transfers expected soon.

With Aspis SA and Commercial Value SA holding the majority shares of USB, it is clear that Aspis Holdings (ASP) and the company Chairman Pavlos Psomiades and CEO Lambros Christophi will play a key role in the future developments of Universal Bank.

On behalf of Aspis Group, Lambros Christophi told the Financial Mirror that the Aspis Group intends to cooperate with all other shareholders, aiming to put “USB on a sustainable growth path.”

He said there is no need for the Aspis Group to proceed with additional purchases of USB shares, which would trigger automatic public takeover rules.

Another obvious beneficiary of the move will ultimately be Liberty Life Insurance, which in most likelihood will enter into a deal with USB to offer bancassurance services.