Bank of Cyprus shareholders approve move to Athens Stock Exchange

Bank of Cyprus shareholders on Friday approved the listing of the bank’s ordinary shares on the Athens Stock Exchange (ATHEX), pending a delisting from the London Stock Exchange (LSE).

The shareholder vote took place during an extraordinary general meeting (EGM) at the bank’s headquarters in Nicosia.

The move, subject to final approval from the ATHEX Listing Committee on September 17, 2024, marks a significant step for the bank as it prepares to delist from the London Stock Exchange (LSE).

The meeting was attended by 36 shareholders, either in person or by proxy, representing over 213 million shares, which is 48.08 per cent of the bank’s total issued share capital.

During the meeting, shareholders voted in favour of listing the company’s shares on ATHEX’s Main Market, which will be conducted in accordance with Greek law.

The bank stated that the decision “remains subject to approval from the Listings and Market Operation Committee of ATHEX”.

If approved, the delisting from the LSE will take effect from 8:00 a.m. on September 19, 2024, with the last day of trading expected to be September 18, according to a bank statement.

Additionally, the bank intends to terminate its share buyback programme on the LSE after trading closes on the same day, though the buyback programme on the Cyprus Stock Exchange will continue unaffected.

The EGM also saw shareholders approve amendments to the company’s articles of association. The bank noted that full details of the resolutions and voting results are available in the circular issued on August 19, 2024.

Moreover, in accordance with UK Financial Conduct Authority regulations, a copy of the resolutions will be submitted to the National Storage Mechanism.

Before the voting took place, group chairman Takis Arapoglou told shareholders that the Bank of Cyprus has now been transformed into “a strong bank, with a high-quality balance sheet, ample capital and liquidity, and sustainable recurring profitability”.

“This has allowed us to reward our shareholders through the return of dividends, a share buyback programme, and a dividend policy that is both ambitious and sustainable,” he added.

He explained that as a result, the bank’s share price has increased significantly in recent years.

Arapogolou explained that this is “not just due to high interest rates, as many believe, but also as a result of the successful transformation of the bank, its strong performance, its pursuit of ambitious goals, and our ability to create value for our shareholders”.

“However, despite these facts, the liquidity of our shares, although gradually improving over recent months, remains low, limiting the expansion of our investor base,” he added.

He stressed that “it is clear that our listing on the London Stock Exchange played a crucial role in providing the bank with international visibility and credibility during the transformation process”.

“Nevertheless”, he continued, “the board of directors believes that delisting from the London Stock Exchange and re-listing our shares on the Athens Stock Exchange offers the potential to enhance the liquidity of our shares and the recognition of the group among a wider group of interested investors, benefiting both shareholders and the bank itself”.

He then confirmed that the bank will continue to maintain its presence and trading of its shares on the Cyprus Stock Exchange (CSE).

“This belief is the result of a holistic evaluation carried out after detailed consultation with our key investors, stock analysts, and brokers,” Arapogolou said.

Furthermore, he said that “the re-listing of our shares on the Athens Stock Exchange represents the next step in our journey to further enhance the bank’s profile”.

“We are building on the significant efforts made in recent years to attract investors and analysts in order to raise the bank’s recognition,” he added.

As examples, he cited the Investor Information Event in June 2023 and the regular review of bank’s targets and objectives.

“The re-listing will mark the return of the Bank of Cyprus to the Athens Stock Exchange, where we were listed before 2017,” he stated.

He pointed out that “the Athens Stock Exchange is now a mature European exchange with a growing reputation in line with Greece’s steady economic growth”,

What is more, Arapoglou stated that re-listing the bank on the Athens Stock Exchange is anticipated to boost the bank’s visibility among a wider range of institutional and private investors.

He also noted that it would facilitate easier comparison with the four major Greek banks, which the bank regards as its closest peers.

Finally, he mentioned that this move would grant greater access to capital from investors active on the Athens Stock Exchange and, in time, could make Bank of Cyprus eligible for inclusion in more stock indices.