Takeover bids for public companies listed on the Cyprus Stock Exchange (CSE) have proven major drivers for activity, often offering prices significantly higher than market value and revitalising investor interest.

These bids not only boost share prices but also lead to increased trading volumes, positively influencing the overall stock market.

Of particular importance are bids made by external investors unaffiliated with the target company, as these reflect the higher value an independent investor places on the acquisition target compared to its prevailing market valuation.

Hellenic Bank serves as a prime example of this trend. When Eurobank began targeting the bank, the former’s share price surged from €2.35 in June 2024 to €4.70 by December 2024—a remarkable 100 per cent increase within six months.

Eurobank’s interest had been apparent well before its first public takeover offer on June 4, 2024. By then, Eurobank had already acquired a 29.2 per cent stake through market transactions, which had gradually pushed Hellenic’s share price from €1.50 at the start of 2023 to €2.35.

In its June announcement, Eurobank disclosed plans to acquire an additional 26.1 per cent stake at €2.56 per share.

Despite this, only 0.48 per cent of shareholders accepted the offer, as the stock price had already risen to €2.35.

Later, on November 25, 2024, Eurobank agreed to acquire a further 37.5 per cent stake from key shareholders, including Demetra Investment, Logicom, and bank employee pension funds, at €4.843 per share. This price represented a 12 per cent premium over the prevailing market price of €4.32.

As of now, Hellenic’s shares have stabilised at around €4.75, approximately 2 per cent below the agreed takeover price of €4.843, with the final offer set to commence after February 7, 2025.

Thanks to the significant weighting of Hellenic Bank shares in the CSE’s general index, alongside gains in Bank of Cyprus shares, the CSE delivered one of the best global returns last year.

Other examples

The operator of the Rodon Hotel in Agros witnessed a dramatic market reaction following the announcement of a public takeover bid by a Hong Kong-based entrepreneur.

On October 11, 2024, the investor expressed intent to acquire at least 76 per cent of shares at €3.50 each, a staggering 187 per cent premium over the prevailing market price of €1.22.

Subsequent market activity saw the bidder acquiring 35 per cent of the shares through CSE transactions at €3.00 each, which remains the current trading price.

Meanwhile, on November 12, 2024, Salamis Tours revealed plans by its major shareholder to launch a public takeover offer at €4.20 per share.

The bidder, who already held an 80 per cent stake since 2018, offered a 27 per cent premium over the then trading price of €3.30.

The share price quickly reached the offer level due to the limited number of remaining shares available for trade.

In each instance, the final offer prices exceeded the net asset value of the respective shares, reflecting the bidders’ confidence in the future profitability of the acquisition targets.

Finally, the most recent public takeover offer involved Logicom’s bid for Demetra Investment.

This move, however, was primarily procedural, as it followed Eurobank’s acquisition of a substantial stake in the target company.