Bank of Cyprus to be listed on LSE, as it has been describing the move as a “significant step in the Bank`s transformation.” What is about to be changed?
17 November, AtoZForex – The Bank of Cyprus aims to maintain their listing on the Cyprus Stock Exchange. Moreover, it will no longer be listed on the Athens Exchange, a press release issued by the Bank says.
Bank of Cyprus to be listed on LSE
Josef Ackermann, the Chairman of the Bank of Cyprus has stated:
“We are delighted to be applying for a listing on the London Stock Exchange, which imprints another important step in the Bank’s transformation. We believe that the Bank, and its share holders, will gain from the greater profile, liquidity and approach to capital that a London listing offers.”
He added that the London stocks listing “will also enhance the Group’s ability, as the largest banking and financial services group in Cyprus, to play a key role in supporting the growth of the Cypriot economy.” The Bank noted that the London indexing is in line with the Bank’s long-term strategic commitment to list on major European exchanges.
The London Stock Exchange listing, the Bank added, is expected to reform the liquidity of the Bank’s stock. This will enhance the Bank’s visibility and lead to a broader base of investors capable of supporting the Bank. In the long-term will increase the confidence of all stakeholders in the Group. Finally, the London listing will help position the Bank amongst a large group of international peers.
Moreover, the Bank said it will apply for a premium LSE listing at a future date. The aim of becoming eligible for inclusion in the FTSE UK Index series. The Bank also said that in a bid to defend eligibility for future inclusion in the FTSE UK index series following a step up to a superior listing, the Bank declared to set up a holding company in Ireland, a FTSE eligible Eurozone country with a common law legal system comparable to that of Cyprus.
No change in Bank Operations
The Bank assures that it “remains fully pledged to Cyprus and there will be no transformation to the Bank’s day-to-day operations or business strategy as a result of the change of the Group’s structure,” adding that the headquarters, management, and operations will all remain in Cyprus. The bank has stated:
“It is intended that the new holding company will own all of the existing shares of the Bank, and existing shareholders of the Bank will receive stocks in the new holding company in proportion to their current ownership.”
The change in the Group’s structure will be implemented by means of a Cypriot law scheme of arrangement. It will be therefore subject to the approval of the Scheme by the shareholders at an extraordinary general meeting. The bank will be pending the approval of the Scheme by the Bank’s regulators and by the Courts of Cyprus.
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