Cyprus offshore to make offer for Romexterra on behalf of MKB

An offshore company with unknown shareholders will make an offer for Romexterra Bank’s shares as part of Hungarian MKB Bank’s attempt to take control over Romexterra. Demera Investments Limited, registered in Cyprus, will offer Romexterra shareholders 6 RON/share according to a copy of the stock sale-purchase contract the bidder will propose to the shareholders of the bank. The transfer of the shares from those shareholders deciding to sell will be on condition of the signing of contracts to buy stock up to 50% plus one share in Romexterra until November 1. After this condition is met, the bank’s shareholders who subscribe during the offer are to get their money for the shares sold, minus the interest for possible gains from this transaction. According to the statements by the Romexterra officials, all the shareholders are supposed to get the same price. Adrian Manaila, an offshore companies expert, says the main benefit companies registered in Cyprus have is confidentiality, with the final beneficiary of the operations they conduct remaining unknown. The tax on profit of Cyprus-registered companies is currently 10%, higher than in other tax havens. Under the contract proposed to shareholders, Demera “will buy during the collection process shares issued by Romexterra,” without becoming a significant shareholder in the bank and “will convey the shares therefrom obtained to the Strategic Investor (MKB Bank i.e.) or to any of its affiliates.”