UL rebuffs Aspis, prefers shipping group

Universal Life Insurance Public Company Ltd, holder of 61.06% of Universal Bank Public Ltd. (USB) rebuffed a takeover bid by Aspis for minimum 20% of USB at 95 cent per share and instead announced that it has signed a sale agreement with Schoeller Holdings Ltd and Path Holdings Ltd.

According to the agreement, Universal Life Insurance Public Company Ltd pledges that following the Public Offer, the two Limassol based shipping companies will secure between 41% and 50.99% of the share capital of Universal Bank Public Ltd.
The sale price has been set at CYP0.90 cents or EUR1.56 per share.

The deal is valued at a minimum of CYP 5.58 mln or EUR 9.7 mln for the 41% stake or CYP 6.9 mln or EUR 12 mln for the 51% stake according to Financial Mirror calculations.

The market bid the USB shares to EUR 1.60 per share on the CSE on the day the UL announcement was made, probably in the hope and anticipation that the shipping group may improve their bid to the 95 cent or EUR 1.65 per share bid from Aspis for 20% minimum control.

UL has clarified that the deal is subject to the two companies receiving the relevant approvals from the Central Bank of Cyprus and from any other competent authority that is necessary for the completion of the agreement.