The Cyprus Stock Exchange, closer to privatization

The Cyprus Stock Exchange (CSE) is getting closer and closer to privatization, with the process to end at the end of 2024 at the latest, according to a bill drawn up by the Ministry of Finance in Nicosia, announced in -cyprus.philenews.com.

The proposed law presents the steps for the privatization of the CSE, the Central Depository and the Central Registry of Securities through a specific process of competitive selection of a strategic investor.

According to the draft law, the privatization process, which involves the evaluation and selection of the strategic investor, will be followed by a contest to express the interest and offers of potential strategic investors. Any share capital or shares held by the State after privatization, in a company, as the case may be, shall be deemed fully paid and settled, as if discharged in kind by the State, and shall be accounted for as issued and transferred to the State against a consideration equal to the nominal value, notes the cited source.

The privatization process will begin following the issuance of a decree or decision of the Council of Ministers published in the Official Gazette of Cyprus.

At the same time, the draft law abolishes the existing stock market legislation and terminates the powers of the CSE Council. Also, the draft includes provisions for the transfer of the tasks, responsibilities, activities and functions of the CSE to a private special purpose vehicle of the assets and liabilities of the CSE and to a private special purpose vehicle for employees and permanent workers of the Ministry of Finance.

The Ministry of Finance has launched the draft law for public consultation, and interested parties are invited to submit their opinions until January 15, 2024.

According to the Ministry of Finance, securing a strategic investor for CSE is a milestone for the Recovery and Resilience Plan of Cyprus, in the section "Improving business competitiveness", with a timetable for completing the privatization by the end of 2024.

In April 2022, the Cyprus Stock Exchange Council announced that it signed an agreement with the Harneys Loizou Armila Shearman consortium for consultancy in the preparation of a business plan for the Cyprus Stock Exchange, respectively for the management of legal aspects and actions regarding the choice of strategic partner/investor in CSE .