09/12/2004 17:12
The Bank of Cyprus is currently in search of better offers for its subsidiaries, Kermia and Kermia Properties & Investments after the “freezing” of the proposal submitted by an Israeli company.
According to the BOC announcement, the Bank has proceeded to negotiations with other interested parties to achieve the best possible price. However, if the Bank of Cyprus fails to do so, a BOC representative did not exclude the possibility that the Bank will accept the offer of the European company (of Israeli interests).
Lower than the floor
According to sources, the reservations of the Bank of Cyprus are related not only to the proposed price but also to a number of terms set by the buyers for the acquisition of assets. The two sides had entered into tough negotiations in the past two weeks, after the completion of the evaluation procedures. For negotiation purposes, the Bank of Cyprus is not expected to reveal the price that it wishes to sell the assets.
“We have set a price that we consider satisfactory. The offer of the interest party was slightly lower than the floor. Taking into account that there were other interested parties as well, we decided to proceed to a search of a better offer”, a BOC official said.
Terms
The terms set by the Israelis played an important role in the outcome of the negotiations. The Israelis requested increased building ratios, accesses etc. “We cannot enter into negotiations under those terms”, the official told StockWatch.
A matter of time
According to StockWatch sources, the Bank is not expected to proceed to the signing of a new Memorandum of Understanding with any of the interested parties, although this is not entirely excluded in the future, if there is a need for a legal economic audit. The procedure will be completed in the next few months, despite its complexity.
The assets of the two subsidiaries are situated in Nicosia, Limassol, Souni, Mazotos, Psematismenos and Ayios Tychonas. The property of one of the two subsidiaries in Ayia Napa of more than £3 million is of great importance and the Bank of Cyprus is not in urgent need for its disposal.
The Bank of Cyprus is planning to withdraw from other non banking activities as well. It is noted that Eureko has already expressed its interest for the acquisition of the Bank of Cyprus’ stake in Universal Life.
According to the BOC announcement, the Bank has proceeded to negotiations with other interested parties to achieve the best possible price. However, if the Bank of Cyprus fails to do so, a BOC representative did not exclude the possibility that the Bank will accept the offer of the European company (of Israeli interests).
Lower than the floor
According to sources, the reservations of the Bank of Cyprus are related not only to the proposed price but also to a number of terms set by the buyers for the acquisition of assets. The two sides had entered into tough negotiations in the past two weeks, after the completion of the evaluation procedures. For negotiation purposes, the Bank of Cyprus is not expected to reveal the price that it wishes to sell the assets.
“We have set a price that we consider satisfactory. The offer of the interest party was slightly lower than the floor. Taking into account that there were other interested parties as well, we decided to proceed to a search of a better offer”, a BOC official said.
Terms
The terms set by the Israelis played an important role in the outcome of the negotiations. The Israelis requested increased building ratios, accesses etc. “We cannot enter into negotiations under those terms”, the official told StockWatch.
A matter of time
According to StockWatch sources, the Bank is not expected to proceed to the signing of a new Memorandum of Understanding with any of the interested parties, although this is not entirely excluded in the future, if there is a need for a legal economic audit. The procedure will be completed in the next few months, despite its complexity.
The assets of the two subsidiaries are situated in Nicosia, Limassol, Souni, Mazotos, Psematismenos and Ayios Tychonas. The property of one of the two subsidiaries in Ayia Napa of more than £3 million is of great importance and the Bank of Cyprus is not in urgent need for its disposal.
The Bank of Cyprus is planning to withdraw from other non banking activities as well. It is noted that Eureko has already expressed its interest for the acquisition of the Bank of Cyprus’ stake in Universal Life.
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