An independent evaluation report has concluded that the €0.014 per share offer made by the Cyprus Trading Corporation (CTC) for the acquisition of Ermes Department Stores is fair and reasonable under the current circumstances.

The assessment, prepared by Grant Thornton and published on June 12, 2026, examines the mandatory takeover bid for the remaining shares of Ermes, which aims to secure full control and lead to the company’s delisting from the Cyprus Stock Exchange (CSE).

The Cyprus Trading Corporation, which currently holds a 77.215 per cent stake in Ermes, intends to pursue a squeeze-out to acquire 100 per cent of the company should the required thresholds under the Takeover Bids Law be met.

The offer price represents a discount relative to the net asset value and the average closing price of the stock over the preceding 12 months, yet experts suggest the methodology used to calculate this consideration is appropriate given the company’s ongoing strategic withdrawal from the retail fashion sector.

Grant Thornton stated that the proposed consideration is fair and reasonable as of the date of the public offer, according to the opinion of Grant Thornton.

The report highlighted that Ermes has been in a process of divesting key assets, including the sale of its Superhome Center (DIY) Limited subsidiary and the closure of its Zako stores, as part of a strategy to rationalise liabilities.

Furthermore, the document notes that the company’s stock has suffered from extremely low liquidity on the Cyprus Stock Exchange (CSE), with trading occurring in only 37.14 per cent of sessions over the 12 months prior to the announcement.

Because of these factors, including accumulated losses and the absence of prospects for long-term operational continuity, traditional valuation methods like discounted cash flow were deemed inapplicable.

The evaluation also considered a recent off-market transaction in which the Cyprus Trading Corporation acquired 17.5 million shares at €0.0073 per share, noting that the offer price of €0.014 represents a 91.78 per cent premium over that acquisition price.

The report clarifies that while no single valuation metric used in the bid is without limitations, the combined approach adopted by the offeror is suitable for the current state of the company.

The acceptance period for the public offer commenced on May 25, 2026, and is set to conclude on July 13, 2026, with the final results expected to be announced on July 15, 2026.

Grant Thornton emphasised that their assessment does not constitute investment advice and shareholders should seek their own professional counsel before deciding on the bid.

The report also showed that the offeror has indicated that it intends to reassess the composition of the board of directors and explore potential mergers with the Cyprus Trading Corporation once the target company becomes unlisted.