CySEC imposes record fine on Commerical Value for market abuse

The Cyprus Securities and Exchange Commission (CySEC) decided to impose an administrative fine of EUR500.000 on Commercial Value Α.Α.Ε. for violation the Market Abuse Law in relation to announcements dated 06 and 13 June 2008 for the sale of shares of Universal Bank Public Co Ltd.
It is noted that on 17 April 2008, the Central Bank of Cyprus, decided to suspend the exercise of the voting right of the company ASPIS Pronoia AEGA and of Commercial Value Α.Α.Ε., which corresponded to a percentage of 19,55% of the share capital of Universal Bank Public Co Ltd, until 31st December 2008, as this percentage was acquired without prior approval of the Central Bank.
On 6 and 13 June 2008, with the Company’s announcements, the impression was created to the average investor that the Company lost control of the voting rights of the sold shares of Universal Bank Public Co Ltd, where these shares were transferred to the companies E&G Electricplus Ltd, Goumouti Ltd and Kaleta Services Ltd, that are related/connected to the Company. With this action, the Company was in a position to control the exercise of the voting rights that these three companies held, in order to overcome the obstacle of the suspension of voting rights imposed by the Central Bank of Cyprus on 17 April 2008.
The maximum fine that CySEC could impose was EUR 854.300. CySEC took into consideration the large amount of money paid by the companies E&G Electricplus Ltd, Goumouti Ltd and Kaleta Services Ltd for the acquisition of the shares of Universal Bank Public Co Ltd, specifically the total amount of EUR13.302.184.
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