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Era’s Announcement to Kyknos Shareholders

The company Era Portfolio Investments Ltd. issued the following announcement concerning its public offer to Kyknos Portfolio Investments Ltd.

1. Era submitted a public offer for acquisition of up to 50% plus 1 share of Kyknos by the payment of 0.80 cents in cash and 5 Era shares for every 4 Kyknos shares. The public offer is guaranteed by the Popular Bank to a minimum of CYP 1.21 per Kyknos share, of which 0.20 cents will be paid immediately and CYP 1.01 cents in 12 months. For warrants of Kyknos, the public offer includes the exchange of one Kyknos warrant for every Era warrant guaranteed at 0.40 cents.

2. If the Sharelink group, which controls over 45% of the share capital of Kyknos, does not accept Era’s public offer, the acceptance of its offer by the rest of the shareholders will mean that for Era to secure 50% plus 1 share of Kyknos it would have to acquire from each shareholder over 70% of Kyknos shares held for the public offer to be successful.

3. The success of Era’s public offer depends on the timely imposition of sanctions by the Securities & Exchange Commission, based on its latest decision. If sanctions are not imposed, the public offer of Era will be successful and therefore all Kyknos shareholders will be able to offer a large part of their shares at the minimum price of CYP 1.21.

4. Era has applied to the SEC underlining the importance of timely imposition of sanctions, both for itself as well as for the thousands of Kyknos shareholders. Era denies the existence of compromise proposals and calls all shareholders to place their trust in the SEC and not to proceed with sales of their shares at lower prices than Era’s public offer.

5. Era reserves its right to contact Kyknos shareholders upon imposition of sanctions by the SEC.
Friday, 23 February, 2001 - 00:00