Marfin Popular Bank Public Co Ltd announces that Marfin Investment Group (MIG), in which it currently holds approximately 97%, has made the following announcement:
"Marfin Investment Group (MIG) announces the acquisition of a 50% participation in the company Attica Akinita (Attica Properties). The acquisition will take place via a share capital increase, in which the existing shareholders will waive their rights, and MIG will participate with Euro 26 million. The transaction is expected to be completed in the next two months pending satisfactory for MIG completion of legal due diligence. Following the Share Capital Increase the Company will submit application for conversion to a Real Estate Investment Company S.A. (ΑΕΕΑP) and its listing into the Athens Stock Exchange (ATHEX) targeting to raise in excess of Euro 100 million.
The company Attica Akinita was established in 1999 and it is the owner of a diversified portfolio of seven corporate real estate assets in the area of Attica, which are leased to high quality institutions (mainly banking groups). Since its inception the company's portfolio has developed registrating an approximate internal rate of return (IRR) of 21%. The company Attica Akinita will form the main arm of MIG?s investment strategy in the area of real estate development. The substantial know-how of the company's executives combined with favorable tax treatment for AEEAPs (transaction tax exemption, income tax currently 0,5% on the assets) and its diversified operational platform, especially as this is expected to be enhanced by the new legal framework, provides a very favorable outlook of the specific investment. For the purposes of this investment, a detailed financial due diligence and property valuation of the company Attica Akinita was carried out".
As it has already been announced publicly, Marfin Popular Bank has informed the Board of Directors of MIG of its intention not to exercise its rights of participation in the increase of MIG's share capital, decided by the Annual General Meeting of MIG on 29/03/2007. As a consequience, if the aboce increase of MIG's share capital is fully covered, the percentage stake of Marfin Popular Bank Public Co Ltd in MIG's share capital will be reduced to approximately 6,35%, with the result that MIG will cease to be a subsidiary of Marfin Popular Bank Public Co Ltd.