By Hamza Hendawi
BANK of Cyprus Chairman Solon Triantafyllides took on the role of Father Christmas yesterday, announcing a centenary package of bonus issues, warrants and a new rights issue in what the bank called a “gesture” to its shareholders.
Addressing a glitzy news conference at the old bank’s headquarters in Nicosia’s Phaneromeni Street, Triantafyllides said a bonus issue in the ratio of one to every 10 shares held next May 4 will be given to shareholders.
Additionally, warrants maturing in October 2003 with an exercise price of three pounds apiece will be issued to shareholders on the same 10-1 ratio.
Triantafyllides also announced a new rights issue of 16 million shares which will be made available to shareholders at the ratio of one for every eight shares held in September. The new shares will be priced at £2.5 each.
He also said that 1998 dividends would be increased by three per cent.
“The announcement exceeded market expectations,” said senior trader Stavros Agrotis of CISCO, the Bank of Cyprus’ brokerage arm.
The bank’s shares closed at £4.22 and trade in the stock accounted for 36 per cent of all volume yesterday. The official all-share index also moved up by 0.57 per cent to close at 97.75 – the highest for at least 13 months.
The total value of trade yesterday was a respectable £5.5 million.
Chairman Triantafyllides spoke to a conference room packed with reporters, Bank of Cyprus executives and a small army of aides and executive assistants. One wall was adorned by a large black and white depiction of the bank’s evolution from its origins in 1899 as the ‘Nicosia Savings bank’.
In a carefully choreographed news conference, the lights dimmed as Triantafyllides was about to make his introductory remarks. Only a green desk lamp remained lit as he spoke.
His presentation was backed up by a slide show and was followed by a promotional film.
The documentary and material in the press kit given to journalists appeared to link the bank’s evolution with the national struggle in the 1950s to rid the island of British colonial rule.
“By supporting the people of Cyprus through difficult times, the BoC identified itself with the people’s fate and it gradually evolved into an international group,” said an English language press release.
The Bank of Cyprus has a market capitalisation of about £450 million. Trading in its titles consistently dominates activity on the Cyprus Stock Exchange, which has a total capitalisation of about £1.4 billion.
The bank, which employs 3,900 people, has in recent years expanded into Greece, where operations account for nearly a third of the group’s profits. The bank also operates in the US, Britain, Canada, South Africa, Australia and in several east European countries.
To mark the centenary, Triantafyllides said employees and living retired personnel would be given 100 bonus shares each, and that 1.5 million warrants would be distributed among them on the same terms given to shareholders.
