Cyprus Business Now
According to their opinion, based on provisions of the 2007 Public Takeover Bids Law, the bank’s board adopts the view of the independent financial advisor (Houlihan Lokey UK Limited) that the valuation reference ranges between €3.31 to €4.12 per share are 29.3 per cent to 60.9 per cent higher than Eurobank’s proposed exchange of €2.56 per share.
“The board agrees with and adopts the opinion of the Independent Financial Advisor that the Proposed Exchange ‘is not fair and reasonable from a financial perspective,’” the board stated.
However, it was noted that the board acknowledges Eurobank’s current ownership of 55.48 per cent of the issued share capital of the bank, thereby holding a majority, regardless of the number of acceptances received for the public offer.
The board also said that shareholders of the bank should seek their own professional advice regarding the provisions of the law and their decision on whether to accept or reject the public offer.
During a press conference held this week, Stek presented its long-standing positions on tourism issues, along with suggestions for developing a strategic plan to address the industry’s long-term problems.
In her presentation, Stek general manager Chrisemily Psilogeni provided data showing that, when adjusted for inflation, revenues recorded in 2023 are lower than those in 2001, a landmark year for the sector, which marked the peak contribution of the tourism industry to the local economy.
According to the data, 2001 saw 2.7 million tourist arrivals with revenues amounting to €2 billion. In 2023, arrivals reached 3.8 million, with revenues amounting to €2.9 billion.
For example, it was noted that the per capita tourist expenditure in 2001 was €73 per day. Adjusted for inflation, this figure should be €109 today. However, in 2023, the per capita expenditure reached only €90.
According to Stek, one reason for the decline is the change in the quality of tourists. In 2001, there were many repeat tourists, with an average stay of 10.3 days.
However, by 2023, the average stay had decreased to 8.6 days. This 18 per cent drop in the duration of tourists’ stays is also reflected in their corresponding expenditures, the association said.
According to the latest data released this week by the Cyprus Securities and Exchange Commission (CySEC), Cyprus’ total AUM reached €9.1 billion at the end of the first quarter of 2024.
This represents a 6.35 per cent increase compared to the fourth quarter of 2023, while the number of Management Companies and Undertakings for Collective Investments remained steady at 328.
“The increase in the Assets Under Management of investment funds, following a period of expected and natural decline, reaffirms once again that Cyprus has matured as a destination for investment funds, keeping pace with international trends,” CIFA president Maria Panayiotou said.
In addition, the survey findings revealed that several key indicators in the construction sector recorded positive growth rates in 2022 compared to 2021.
The total production value in the broader construction sector rose by 10.3 per cent in 2022, reaching €5.56 billion, up from €5.04 billion in 2021.
New construction works reached €3.39 billion in 2022, marking a 15.6 per cent increase compared to 2021.
This reduction primarily stems from bond maturities through the Public Sector Purchase Programme (PSPP).
The ECB continues its balance sheet normalisation efforts under both the broader Asset Purchase Programme (APP) and the Pandemic Emergency Purchase Programme (PEPP) as part of its restrictive policies aimed at curbing inflation.
According to ECB data, the remaining balance of Cypriot bonds within the PSPP portfolio stood at €3.99 billion at the end of June, reflecting a decrease of €304 million due to bond expirations during the same month.
Moreover, the average weighted maturity of Cypriot bonds in the Eurosystem’s balance sheet was 8.02 years.
In its announcement, the bank noted that the branch is situated centrally at 1 Archbishop Makarios III Avenue, “ensuring easy access for the public”.
“AstroBank’s aim is to effectively meet the contemporary needs of its customers, individuals and businesses, and provide the best banking experience, for both simple and specialised banking needs,” the bank said.
“This achievement underscores Wizz Air’s steadfast commitment to providing affordable and high-quality travel experiences,” the company stated in a press release.
Wizz Air also highlighted that, in order to meet growing demand, it continues to expand its route network from Larnaca International Airport, including increased flights for the summer and autumn seasons of the current year, as recently announced.
To celebrate this milestone, Wizz Air awarded a travel voucher to the passenger holding the 8 millionth ticket.
According to a statement from the Cyprus Statistical Service (Cystat), the production value in 2022 saw notable increases across various sectors. The transportation and storage sector (sector H) experienced a rise of 29.3 per cent.
In accommodation and food service activities (sector I), there was a significant increase of 44.8 per cent. The information and communication sector (sector J) had an uplift of 37.6 per cent.
Real estate activities (sector L) recorded an increase of 18.2 per cent. Professional, scientific, and technical activities (sector M) saw a rise of 13 per cent. Administrative and support service activities (sector N) increased by 23.2 per cent.
According to the report, the total number of people employed in the government reached 54,153 as of June 2024.
During the period from January to June 2024, the average total government employment stood at 54,721 individuals, marking an increase of 2,524 people (4.8 per cent) compared to the corresponding period in 2023.
In a statement released this week, the agency assigned its inaugural credit rating to Eurobank, setting the long-term issuer rating at BBB (low).
Regarding the progress of Hellenic Bank’s acquisition, DBRS said that it will continue to monitor developments surrounding Eurobank’s public offer to acquire the remaining equity of Hellenic Bank. Eurobank has already acquired 55 per cent of Hellenic Bank.
“On a preliminary basis, Morningstar DBRS understands that in the short term, the impact of the acquisition will generally be neutral on most credit fundamentals of the group with a manageable negative impact on capitalisation,” the agency said.
The Cyprus Stock Exchange (CSE) ended Friday, July 12 with profits.
The general Cyprus Stock Market Index was at 163.55 points at 12:31 during the day, reflecting an increase of 0.79 per cent over the previous day of trading.
The FTSE / CySE 20 Index was at 99.48 points, representing a rise of 0.82 per cent.
The total value of transactions came up to €268,557, until the aforementioned time during trading.
In terms of the sub-indexes, the main, alternative and investment firm indexes rose by 1.16 per cent, 0.28 per cent, and 5.14 per cent respectively. The hotel index remained unchanged.
The biggest investment interest was attracted by Hellenic Bank (-0.39 per cent), Demetra (+5.26 per cent), the Bank of Cyprus (-0.24 per cent), Pandora (+5.13 per cent), and the Cyprus Cement Company (+0.61 per cent).