Following the announcement of its plans to raise Euro 5 billion to invest in the Greek and SEE banking sector, Marfin Investment Group (MIG) continues to believe that the current financial crisis represents a unique opportunity for an entity with a strong cash position that is able to make such investments. Given ongoing market volatility and conditions, MIG's management believes that a capital raising at a minimum price of euro 5 per share would not be possible while completing the exercise at a lower price would not reflect the true value of the company and that of its underlying investments and as a result would be unjustifiably dilutive to MIG's existing shareholders.
Following the advice received from its investment banking advisors (Morgan Stanley, Deutsche Bank and UBS), MIG's management believes that it is more appropriate for the proposed vehicle acquiring the banking sector assets to be capitalized independently of MIG in the first instance; a strategic and financial relationship between this vehicle and MIG will be clearly established.
The exact transaction structure, the nature of the proposed acquisition vehicle and its relationship with the rest of MIG is expected to be announced to the market in due course following further assessment of appropriate vehicle structures and discussions with potential investors. It is anticipated that MIG's existing investors will be able to invest in the new vehicle to the extent permitted by regulation in their respective jurisdictions. It is expected that the new vehicle will be launched within this financial year.