CTC to launch takeover bid for Ermes

Cyprus Trading Corporation Plc is moving ahead with a mandatory public takeover bid for Ermes Department Stores Plc, after increasing its stake in the company through the purchase of 17.5 million ordinary shares. 

According to the announcement, Cyprus Trading Corporation bought the shares, representing 10.029 per cent of Ermes’ issued share capital, from Department Stores Realisations Limited for a total of €127,758.43, at €0.0073 per share. 

Before the transaction, the company directly held 117,240,047 shares in Ermes, or 67.186 per cent, while its total holding together with persons acting in concert stood at 67.774 per cent. 

Following the acquisition, the threshold requiring the submission of a mandatory public offer was triggered under Article 13 of the relevant law. 

The offer relates to the acquisition of up to 100 per cent of Ermes’ issued share capital, with Cyprus Trading Corporation proposing to pay €0.014 per share in cash to shareholders who accept the bid. 

As of the date of the announcement, Ermes had 174,499,710 ordinary shares in issue. 

Cyprus Trading Corporation now directly holds 134,740,047 shares, representing 77.215 per cent of the voting rights, while its total holding together with related parties stands at 77.803 per cent. 

The company said it is making arrangements with a Cyprus credit institution to secure the funds needed to pay the consideration. 

It added that the public offer is subject to the necessary approvals from the Cyprus Securities and Exchange Commission (CySEC), and is not conditional on any other regulatory clearances or conditions. 

Because the offeror already controls more than 50 per cent of the voting rights, the bid will be regarded as successful regardless of how many additional shares are tendered. 

Full details of the offer will be set out in the formal public offer document to be prepared in line with the law and the instructions of the Capital Market Commission. 

Cyprus Investment and Securities Corporation Ltd (CISCO) is acting as adviser to the offeror on the public offer and as underwriter under the applicable regulatory framework of the Cyprus Stock Exchange (CSE). 

The announcement was notified to the Capital Market Commission, the CSE and the board of directors of Ermes Department Stores Plc.