Bank of Cyprus could receive a revised acquisition from Lone Star Funds, having rejected three previous approaches, a Lone Star press release said on Tuesday.
In a statement to the London Stock Exchange, the US private equity firm disclosed that it is ‘considering its options’ around making a revised offer for the Bank of Cyprus.
Any offer proposal would be for acquisition via a scheme of arrangement, as defined by Irish statutory standards, as opposed to a takeover bid under Cypriot takeover law, it said.
Lone Star’s first proposal was made in early May, for €1.25 per share, which Bank of Cyprus rejected, prompting Lone Star to increase the price to €1.38 per share.
The third and final proposal was made in early July at €1.51 per share. Bank of Cyprus also rejected the offer, because the bid fundamentally undervalued the company. It also said that Lone Star did not properly consider its “strategic importance” to Cyprus.
Responding on Tuesday, Lone Star stated that “the company’s strategic significance to Cyprus. As a global investor with a strong track record of investing in the financial sector including Germany’s IKB Deutsche Industriebank AG and Portugal’s Novo Banco SA, Lone Star takes its custodianship of strategic financial institutions seriously as well as ensuring businesses flourish under its ownership.”
Lone Star has until September 30 to announce its intention to place an offer or withdraw from the process.