Aspis stake in Universal above 40%

Aspis Holdings (formerly MFS) announced that its stake in Universal Life Insurance Public Co. Ltd., is now in excess of 40% with a good possibility for the level to increase as the extended public offer made for UL shares at CYP 3.00 per share is still in progress.

Aspis Chairman Pavlos Psomiades said Aspis is determined to safeguard and uphold shareholder rights and for this reason, it has demanded for the holding of an Extraordinary General Meeting of shareholders of UL.

The demand is made to force UL strongman Andreas Georghiou to reconsider his decision to accept a lower bid of EUR 1.56 per share submitted by the German led shipping companies based in Limassol as opposed to the decision of the Cyprus SEC, which states that the minimum price of the bid should be EUR 2.50 per share because of related purchases by Europrofit Capital, which is seen connected to Path Holdings.

“By accepting a lower offer, Georghiou is costing UL the amount of EUR 7.5 mln,” said Psomiades, who said that the Aspis Group considers all its options on both UL and USB open.

Psomiades, flanked by Aspis CEO Lambros Christophi said that the UL investment has cost the Group some EUR 32 mln, which together with a previous capital increase has increased Aspis’ investments in Cyprus at EUR 45 mln.

“We intend to invest more in Cyprus,” said Psomiades, adding that all that the Aspis Group has asked the Finance Minister and the Governor of the Central Bank is a level playing field.

Christophi said that the CSE meeting on Thursday on the USB matter is eagerly awaited and will have an important impact on how things proceed from here onwards.

 

2007 forecast

Aspis meanwhile has issued a bullish forecast regarding its 2007 and 2008 targets. The Group, which in 2006 had a total premium income of EUR 455 mln expects total revenue in Cyprus to climb to EUR 33 mln in 2007 and EUR 42 mln in 2008 while net profit, which in 2006 amounted to EUR 1.67 mln is forecast to climb to EUR 8 mln in 2007 and EUR 12 mln by 2008.

“The above forecasts do not include future takeovers,” clarified Christophi adding that with the new capital injections planned in the next couple of months, the total capital of Aspis Holdings will climb to EUR 77 mln.

Christophi also clarified that the EUR 32 mln investment in UL is booked in the accounts of Aspis at cost, adding that there is no link between the capital injection made by Liberty Life and the new capital increase planned by Aspis.