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Lone Star says it has no intention in making an offer for Bank of Cyprus

27/09/2022 10:51

Lone Star confirmed on Tuesday that it has no intention in making an offer for Bank of Cyprus.

"Lone Star confirmed today that it does not intend to make an offer for Bank of Cyprus," it announced in a statement published on London Stock Exchange. It also notes that Lone Star will be bound by the restrictions set out in Rule 2.8 of the Irish Takeover Rules and that it "reserves the right within the next 6 months to set aside this statement where so permitted under Rule 2.8 (including Rule 2.8(c)(ii))".

The US-based private equity fund Lone Star has made three non-binding offers to buy the share capital of Bank of Cyprus, which were rejected by the Board of Directors of the Bank, saying that Lone Star fundamentally underestimates the value and future prospects of the bank. The fund had published the proposal for the acquisition of Bank of Cyprus on August 19th.

Lone Star came back with a new announcement on September 6th, saying it was considering its options in relation to the possibility of submitting a revised bid for Bank of Cyprus.

Under the Rule 2.6(a) of the Irish Takeover Rules, Lone Star had to, by no later than 5.00 p.m. on 30 September 2022, either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Rules or announce that it does not intend to make an offer.