REG - Bank of Cyprus Hldgs - Response to statement by LSF XI Investments LLC

Bank of Cyprus HoldingsAnnouncement

27/09/2022 12:15

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RNS Number : 8616A  Bank of Cyprus Holdings PLC  27 September 2022

Announcement

 

Response to statement by LSF XI Investments LLC

 

Nicosia, 27 September 2022

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION (DIRECTLY OR INDIRECTLY) IN WHOLE
OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

 

Group Profile

 

The Bank of Cyprus Group is the leading banking and financial services group
in Cyprus, providing a wide range of financial products and services which
include retail and commercial banking, finance, factoring, investment banking,
brokerage, fund management, private banking, life and general insurance. At 30
June 2022, the Bank of Cyprus Group operated through a total of 86 branches in
Cyprus, of which 11 operated as cash offices*. The Bank of Cyprus Group
employed 3,422 staff worldwide**. The Bank of Cyprus Group comprises Bank of
Cyprus Holdings Public Limited Company, its subsidiary Bank of Cyprus Public
Company Limited and its subsidiaries.

*The number of branches and cash offices were reduced by 15 and 7 respectively
on 1 July 2022.

** The number of staff has been reduced by c.550 employees following the
completion of a voluntary staff exit plan in July 2022.

The board of directors of Bank of Cyprus Holdings PLC ('Bank of Cyprus' or the
'Company' and the 'Board') notes the announcement made by LSF XI Investments
LLC ('Lone Star') on 27 September 2022 confirming that it does not intend to
make an offer for Bank of Cyprus under Rule 2.7 of the Irish Takeover Rules
and is therefore bound by the restrictions under Rule 2.8 of the Irish
Takeover Rules.

 

As announced by the Company on 19 August 2022, the Board has received and
unanimously rejected three unsolicited, conditional, non-binding proposals
from Lone Star on the basis that Lone Star's proposals fundamentally
undervalued the Company and its future prospects. The Board confirms that it
has not received any further approach from Lone Star following its rejection
of Lone Star's third proposal on 22 July 2022.

 

The Board remains confident in the Company's future prospects and remains
committed to delivering its strategy of becoming a sustainably profitable
institution capable of further supporting the Cypriot economy. Bank of Cyprus
updated its medium-term strategic targets in February 2022 and upgraded its
expectations in May and again in August 2022. The Board reiterates the
upgraded guidance given in August 2022, including delivery of a return on
tangible equity of greater than 10% in 2023 and, subject to regulatory
approvals and market conditions, a return to meaningful dividend distributions
from 2023 onwards. The Board remains confident in its ability to implement its
strategic objectives, delivering strong shareholder returns in the medium and
long term.

For further information, please contact:

 Bank of Cyprus Holdings PLC                                     Aurrera Communications

 Annita Pavlou                                                   Karen Le Cannu
 Manager Investor Relations & ESG                                Managing Director
 investors@bankofcyprus.com (mailto:investors@bankofcyprus.com)  karen.lecannu@aurreracomms.com (mailto:karen.lecannu@aurreracomms.com)
 Tel: +357 2212 2239                                             Tel: +33 (0) 6 98 23 86 13

 

 

Goldman Sachs International (Joint Financial Adviser to Bank of
Cyprus)

+44 (0) 20 7774 1000

Harry Eliades

Francesco Paolicelli

Owain Evans

Dimitris Kofitsas

Cara Pazdon

Jorge Torrecilla

 

HSBC (Joint Financial Adviser and Corporate Broker to Bank of
Cyprus)

+44 (0) 20 7991 8888

Anthony Parsons

Simon Alexander
 

Alexander Paul

Sam McLennan

Richard Carr

Alex Thomas

 

Goldman Sachs International ('Goldman Sachs'), which is authorised by the
Prudential Regulation Authority ('PRA') and regulated by the Financial Conduct
Authority ('FCA') and the Prudential Regulation Authority in the UK, is acting
exclusively for Bank of Cyprus and no one else in connection with the matters
referred to in this announcement and will not be responsible to anyone other
than Bank of Cyprus for providing the protections afforded to clients of
Goldman Sachs or for providing advice in connection with the matters referred
to in this announcement. No representation or warranty, express or implied, is
made by Goldman Sachs as to the contents of this announcement.

HSBC Bank plc is authorised by the PRA and regulated by the FCA and the PRA in
the United Kingdom and is acting exclusively for Bank of Cyprus and no one
else in connection with the possible offer and other matters referred to in
this announcement and will not regard any other person (whether or not a
recipient of this announcement) as a client in relation to the possible offer
or any other matters referred to in this announcement and is not, and will not
be, responsible to anyone other than Bank of Cyprus for providing the
protections afforded to its clients or for providing advice in relation to the
possible offer, the contents of this announcement or any transaction or
arrangement referred to in this announcement.

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