Defiant Aspis promises more takeovers

Aspis Holdings Pcl, formerly MFS Holdings Pcl (MFS) has promised that it will continue to invest heavily both in Cyprus and in the Balkans/East Europe through its Cyprus holding company, despite the legal setback witnessed in the fight to block the transfer of shares in Universal Life Insurance and Universal Bank.

Pavlos Psomiades, Chairman of Aspis Holdings stressed during a press conference in Nicosia that despite the setback whereby its petition to block big share transfers in UL and USB shares, it will stay with its 35% investment in UL and proceed with more takeovers.

“We (Aspis) have made a public offer for Universal Life and we are counting on the remaining float of 12-17% to join us,” said Psomiades, adding that in addition to the 35% stake in UL, “which will not be sold” the group will proceed with new takeovers in Cyprus and abroad.

“The court decision has simply delayed our ambitious plans to become a significant insurance group with banking operations,” said Psomiades, adding that in the worst scenario (if it does not win control of Universal Bank) the Group can easily bring its own Aspis Bank, based and operating in Greece to Cyprus.

“It will simply take more time and since we have ambitious plans to use Cyprus as our base, we preferred to acquire USB and use it as our base.”

Aspis Holdings is now present in five countries – Greece, Cyprus, Sweden, Germany and Albania. By end of 2006, it had EUR 450 mln in net premium income, EUR 3.5 bln in assets and 220 staff.

Referring to the reason why UL decided to transfer/sell a controlling stake in USB to a German shipping group also seeking control of USB, Psomiades said UL has acted against the best interests of its shareholders, since “UL CEO Andreas Georghiou sold the USB shares at a lower price than our public offer price.”

He also added that previously Georghiou had justified his preference to sell UL’s stake in USB to the shipping group because “UL would continue to hold a 20% stake in USB and the shipping group had promised to invest CYP 4 mln in new capital.”

Psomiades said by its latest action, UL now controlled only 9.99% of USB, whereas if it had gone with the Aspis bid, it would maintain a higher level, it would get a better price and Aspis would also make the same or even higher capital investment in the Bank.