BOC Holdings’ listing on LSE could boost liquidity for CSE

Bank of Cyprus’ decision to list on the London Stock Exchange (LSE) could bring a much-needed boost to liquidity in the Cyprus Stock Exchange (CSE), an expert told the annual general meeting of the Cyprus Association of Listed Companies on Tuesday, echoing the support of both the Finance Minister and the CSE Director.

Attenborough, of UK Large Caps, Equity primary markets at the London Stock Exchange Group, said that the bank’s listing will have a spillover effect and will increase liquidity in the Cyprus bourse.

He said that investors will begin to look for new opportunities to invest in, not just in the Bank of Cyprus, but in other Cypriot companies, as well.

Minister of Finance Minister Harris Georgiades expressed the government’s content over the listing decision and spoke of “a prospect of strategic importance”.

“Among other things we regard this as a bridge of cooperation between our stock exchange, where the Bank of Cyrus will maintain a listing, and one of the largest stock exchanges in the world,” he noted.

CSE Director General Nontas Metaxas added the need for the EU to cut red tape so as to increase capital raised via the stock exchange.

On Monday, Bank of Cyprus called for an extraordinary general meeting on December 13, where shareholders will need to approve the transfer of the entire share capital to a new holding company, registered in Ireland, which will become the instrument for the listing in London.

The Group already announced on November 15 that it intends to maintain a listing on the Cyprus Stock Exchange, but will no longer be listed on the Athens Exchange.

The EGM will be called to approve the introduction of Bank of Cyprus Holdings Plc as a new holding company of the bank. The Directors consider the scheme to be fair and reasonable, the announcement said.

In addition, the Directors believe the scheme to be in the best interests of BOC and the shareholders as a whole, and accordingly, unanimously recommend that shareholders vote in favour of the scheme and the scheme resolutions at the EGM, as they intend to do in respect of their own beneficial shareholdings.

According to the resolution proposed at the EGM, the issued share capital of Bank of Cyprus Public Company Limited will be reduced from EUR 892,294,453.30 divided into 8,922,944,533 ordinary shares of a nominal value of 10c each to nil by cancelling all the shares comprising the issued share capital. The authorised share capital of the company be increased to EUR 4,767,759,272.00 divided into 47,677,592,720 ordinary shares with a nominal value of 10c each through the creation of 8,922,944,533 new but unissued ordinary shares, each of which shall have the same rights and shall rank pari passu with the existing ordinary shares of the company.

All shares will then be issued and allotted, credited as fully paid, to Bank of Cyprus Holdings plc.