CYPRUS POPULAR BANK PUBLIC CO LTD
Announcement regarding the acquisition of 50.12% of AS SBM Pank
Further to its announcements of 14/06/2007 and 02/10/2007 concerning the acquisition of 50.12% of AS SBM Pank, Marfin Popular Bank Public Co Ltd (MPB) states the following:
The total price agreed for the acquisition of 50,12% of the Company (10.050.000 shares) is EUR 6.432.065, which was paid in cash and no goodwill results. A due diligence report relating to the share capital acquisition was prepared by the accounting firm Grant Thornton and no external consultant was involved.
AS SBM Pank was established in Estonia on 14/10/1999 and operates under the supervision of the Estonian authorities. It has four branches, providing a full range of banking services and products to its customers.
The stake was acquired from Marfin Investment Group (MIG) within the context of reducing of MPB's holding in MIG and transfer of the Group's financial services to MPB. The acquisition was at arm's length.
On the basis of the plans for development of AS SBM Pank we consider conditions are suitable for the investment to provide a significant return by contributing to overall profitability and also by supporting the Group's diversification of risk.
According to the Company's audited financial statements in December 2006, net profit was EUR 223 thousand. Shareholders' interest amounted to EUR 12,6 million and advances and deposits to EUR 22,3 million and EUR 13,3 million, respectively.
The total price agreed for the acquisition of 50,12% of the Company (10.050.000 shares) is EUR 6.432.065, which was paid in cash and no goodwill results. A due diligence report relating to the share capital acquisition was prepared by the accounting firm Grant Thornton and no external consultant was involved.
AS SBM Pank was established in Estonia on 14/10/1999 and operates under the supervision of the Estonian authorities. It has four branches, providing a full range of banking services and products to its customers.
The stake was acquired from Marfin Investment Group (MIG) within the context of reducing of MPB's holding in MIG and transfer of the Group's financial services to MPB. The acquisition was at arm's length.
On the basis of the plans for development of AS SBM Pank we consider conditions are suitable for the investment to provide a significant return by contributing to overall profitability and also by supporting the Group's diversification of risk.
According to the Company's audited financial statements in December 2006, net profit was EUR 223 thousand. Shareholders' interest amounted to EUR 12,6 million and advances and deposits to EUR 22,3 million and EUR 13,3 million, respectively.