Cyprus Business Now: weekly wrap-up

Here are the top business stories in Cyprus from the week starting August 21:

Entertainment venues in coastal towns are still seeing heightened traffic after the 15 August public holiday, according to entertainment venue owners’ federation (Osika) chairman Fitos Thrasivoulou.

Thrasivoulou said the increased numbers have come as many Cypriots have elected to spend the second half of the month on the island, spending their time off work in the island’s tourist hotspots.

Greek lender Eurobank on Wednesday announced that it has formally entered into a share purchase agreement with Poppy S.à r.l., outlining its intention to acquire an additional 17.3 per cent stake in Hellenic Bank.

The acquisition, which has been described as a strategic move aimed at bolstering the bank’s presence in key markets, will be executed for a total consideration of €167.9 million, equating to €2.35 per share.

Following the original announcement, Eurobank on Friday announced a further increase in its ownership share of Hellenic Bank, with the bank disclosing that it has reached an agreement with Senvest Management LLC to acquire a 1.6 per cent stake in the Cypriot bank.

This development comes on the heels of another major agreement, where Eurobank secured a deal with Pimco to acquire a substantial 17.3 per cent stake in Cyprus’ second-largest bank.

This additional share increase will consequently raise Eurobank’s overall stake in the bank to 48.1 per cent.

Cyprus’ transportation and storage sector experienced a substantial growth of 17.3 per cent during the second quarter of 2023, compared to the same period last year, according to a report released this week by the state’s statistical service.

The cost of the government’s actions will become evident in the medium-term and it have to take responsibility for its choices, former finance minister and opposition Disy MP Harris Georgiades said on Monday, responding to recent statistical analyses that showed Cyprus’ GDP shrunk in the second quarter of 2023.

Israeli hotel group Fattal is set to acquire the Limassol Grand Resort and recently acquired the Latsi Holiday Village Resort, the group announced on Monday.

This will extend the company’s footprint in the country to nine hotels in Paphos, Larnaca, Protaras, and Limassol.

Cyprus’ energy sector is crucial for the country’s competitive edge and must adapt to renewable energy demands if it is to overcome the major challenges it currently faces, Energy Minister George Papanastasiou said on Wednesday.

The Limassol tourism board on Thursday held a press conference to officially welcome the upcoming M&I Europe Summer Forum, a major event that is due to take place between August 30 and September 2, cementing the city’s leading role in the conference sector.

The event will be structured in such a way as to allow attendees to network across 40 meetings, while delegates will also be able to experience the city of Limassol through various discovery and networking activities, allowing them to further develop their connection in a more informal setting.

The cabinet of ministers on Thursday approved an action plan for the provision of incentives seeking to boost mergers and acquisitions between small and medium-sized enterprises (SMEs).

As stated after the cabinet session by Minister of Finance Makis Keravnos, the aim is to provide a decisive boost to business development through these incentives.

The chairman of the Cyprus Securities and Exchange Commission (CySEC) George Theocharides on Thursday stated that Eurobank should proceed with a mandatory public offer to the shareholders of Hellenic Bank for the acquisition of 100 per cent of the bank’s capital.

In an interview with the Cyprus News Agency (CNA), Theocharides underscored the importance of adhering to regulatory processes and compliance in such transactions.