Nicosia, Cyprus. Cyprus Trading Corporation (CTC) increased its direct holding in Ermes Department Stores Plc to 86.275 per cent following the completion of its mandatory takeover bid for the retailer’s remaining shares. Preliminary results showed that shareholders tendered 15,810,257 shares during the offer period, which ended on July 13.
Offer results
The shares tendered represented an acceptance rate of 9.060 per cent. At the offer price of €0.014 per share, CTC will pay approximately €221,344 for the shares submitted through the bid.
Of the tendered shares, 1,026,128 shares, representing 0.588 per cent of Ermes’ issued share capital, were held by persons considered under the law to be acting in concert with CTC.
Combined with the 134,740,047 shares, or 77.215 per cent, held directly by CTC before the offer closed, the acceptances increase its direct participation to 150,550,304 shares.
Preliminary figures
CTC said the figures remain preliminary and may change following the final examination of acceptance and transfer forms. Applications containing missing or incorrect information may be rejected.
The bid is considered successful under Article 10(1) of Cyprus’ Takeover Bids Law, as CTC already controlled more than 50 per cent of Ermes’ voting rights before the process began.
However, CTC’s resulting 86.275 per cent holding remains below the 90 per cent threshold under Cyprus law for exercising squeeze-out rights over remaining minority shareholders.
Mandatory bid
CTC launched the mandatory bid on April 2 after acquiring 17.5 million Ermes shares from Department Stores Realisations Limited, formerly Debenhams Retail Plc, for €127,758.43.
The transaction, completed at €0.0073 per share, increased CTC’s direct stake from 67.186 per cent to 77.215 per cent and triggered the obligation to make an offer for up to 100 per cent of Ermes’ issued share capital.