The Cyprus Trading Corporation (CTC) has increased its direct holding in Ermes Department Stores Plc to 86.275 per cent, following the completion of its mandatory takeover bid for the retailer’s remaining shares.

According to the announcement, preliminary results showed that shareholders tendered 15,810,257 Ermes shares, representing an acceptance rate of 9.060 per cent, during the offer period that ended on July 13.

At the offer price of €0.014 per share, CTC will pay approximately €221,344 for the shares submitted through the bid.

Of the shares tendered, 1,026,128, 0.588 per cent of Ermes’ issued share capital, were held by persons considered under the law to be acting in concert with CTC.

Combined with the 134,740,047 shares, 77.215 per cent, already held directly by CTC before the offer closed, the acceptances raise its direct participation to 150,550,304 shares.

The company stressed that the figures remain preliminary and could change following the final examination of the acceptance and transfer forms. Applications containing missing or incorrect information may be rejected.

The bid is considered successful under Article 10(1) of Cyprus’ Takeover Bids Law because CTC already controlled more than 50 per cent of Ermes’ voting rights before the process began.

However, the resulting 86.275 per cent holding remains below the 90 per cent threshold set out under Cyprus law for the exercise of squeeze-out rights over remaining minority shareholders.

CTC launched the mandatory bid on April 2 after buying 17.5 million Ermes shares from Department Stores Realisations Limited, formerly Debenhams Retail Plc, for €127,758.43.

That transaction, completed at €0.0073 per share, increased CTC’s direct stake from 67.186 per cent to 77.215 per cent and triggered the obligation to make an offer for up to 100 per cent of Ermes’ issued share capital.

The offer period opened on May 25 after the Cyprus Securities and Exchange Commission (CySEC) approved the takeover document and ran until July 13.

An independent assessment prepared by Grant Thornton had described the €0.014 offer as fair and reasonable under the circumstances, taking into account Ermes’ accumulated losses, limited share-trading activity and ongoing withdrawal from parts of the retail sector.

The Cyprus Investment and Securities Corporation Limited (CISCO) acted as CTC’s adviser on the takeover and as underwriter operator under the relevant Cyprus Stock Exchange (CSE) rules.