Nicosia, Cyprus. An independent evaluation report has concluded that the €0.014 per share offer made by Cyprus Trading Corporation for the acquisition of Ermes Department Stores is fair and reasonable under the current circumstances. The assessment was prepared by Grant Thornton and published on June 12, 2026.
Takeover bid and delisting plan
The report examines the mandatory takeover bid for the remaining shares of Ermes, aimed at securing full control of the company and leading to its delisting from the Cyprus Stock Exchange.
Cyprus Trading Corporation currently holds a 77.215 per cent stake in Ermes and intends to pursue a squeeze-out to acquire 100 per cent of the company if the required thresholds under the Takeover Bids Law are met.
Offer valuation
According to the report, the offer price represents a discount relative to the net asset value and the average closing price of the stock over the preceding 12 months. However, the evaluation said the methodology used to calculate the consideration is appropriate given the company’s ongoing strategic withdrawal from the retail fashion sector.
Grant Thornton stated that the proposed consideration is fair and reasonable as of the date of the public offer.
Company restructuring and market conditions
The report highlighted that Ermes has been divesting key assets, including the sale of its Superhome Center (DIY) Limited subsidiary and the closure of its Zako stores, as part of a strategy to rationalise liabilities.
It also noted that the company’s stock has suffered from extremely low liquidity on the Cyprus Stock Exchange, with trading taking place in only 37.14 per cent of sessions during the 12 months before the announcement.
Valuation approach
Because of accumulated losses and the absence of prospects for long-term operational continuity, traditional valuation methods such as discounted cash flow were considered inapplicable.
The evaluation also considered a recent off-market transaction in which Cyprus Trading Corporation acquired 17.5 million shares at €0.0073 per share, noting that the €0.014 offer represents a 91.78 per cent premium over that acquisition price.
The report said that while no single valuation metric used in the bid is without limitations, the combined approach adopted by the offeror is suitable for the company’s current condition.