Cyprus Mail
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Stock suspension lifted after Hellenic, Co-op sign deal

By Stelios Orphanides

The Cyprus Stock Exchange said that it lifted the suspension of trading in Hellenic Bank, Demetra Investments and Logicom securities after being instructed to do so by the Securities and Exchange Commission.

The reasons which led to the suspension in the trading of the above stock no longer exist, the CSE said in three separate statements on its website on Tuesday, a day after Hellenic Bank and the Cyprus Cooperative Bank signed an agreement transferring the state-owned bank’s operations to Hellenic.

In a separate statement, also on the website of the CSE, Demetra, currently owner of 10.1 per cent of Hellenic’s stock and owned to 29.6 per cent by software developer and information technology services provider Logicom, said that following Hellenic’s agreement with Bravo Strategies III, a fund affiliated with Pacific Investment Management Company LLC (PIMCO), it agreed with Hellenic to reduce its pledge to participate in the latter’s capital increase to €50m from €72.3m announced on June 22.

On Monday, Hellenic said that it agreed with Bravo Strategies III that it will participate in the bank’s €150m capital raise with up to €50m private placement.

The trading of Demetra and Logicom stock was suspended on June 18, more than a month after the suspension of that of Hellenic.

Following the resumption of trading, Hellenic’s share was traded at noon at €0.73 which is almost 20 per cent higher compared to its May 17 closing. Logicom’s stock was traded at €1.44, which is 0.7 per cent below opening while that of Demetra rose 7.4 per cent to €0.49.

On Tuesday, the council of ministers, which on June 15 gave the go-ahead for the Hellenic and Co-op deal, approved a proposal submitted by the finance ministry for an asset protection scheme which will protect Hellenic Bank from future impairments, in accordance with a clause in the agreement, the Press and Information Office (PIO) said.

 

“The proposal will be submitted for approval to the House of Representatives,” the PIO said in an emailed statement.

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