Marfin Popular: Authorization of BoD to initiate negotiations with BOCY
• Shareholders have approved the initiation of negotiations with Bank of Cyprus.
• Estimated synergies are up to €361.2m through a potential cooperation of the two banks.
In today’s Annual General Meeting of the shareholders of Marfin Popular Bank, the shareholders have authorized the Board of Directors of the Bank to initiate negotiations with the Board of Directors of the Bank of Cyprus regarding a friendly strategic cooperation agreement. The relevant agreement will provide for a full integration of the international operations of the two Banks outside of Cyprus, and in the medium term assuming that circumstances are right, a full merger between the two financial institutions.
Marfin shareholders voted that these proposals should be made on the condition that the shareholders of Bank of Cyprus also authorize their board to engage in these negotiations on the basis of:
1. The negotiations to be the outcome of willingness for an amicable and professional cooperation of the shareholders of the two Banks for their benefit.
2. Any debating issues between the Management of the two Banks to be resolved through the shareholders of the two Banks. The authority for final decision about such important strategic matters lies solely with the shareholders.
During the Annual General Meeting, Marfin Popular Bank’s management presented its estimates for the benefits from a cooperation agreement between the two banks.
Under the assumption of combining the two banks’ international operations, earnings of the combined entity should be enhanced by €79.3m for the first year, €163.5m for the second year and €236.3m for the third year of cooperation.
In the event of a full merger scenario, earnings should be enhanced by €142.9m for the first year, €278m for the second year and €361.2m for the third year of cooperation. The above numbers are based on Marfin Popular Bank’s estimates and they could be subject to revision upon the provision of more detailed information of the management of the two banks.
• Estimated synergies are up to €361.2m through a potential cooperation of the two banks.
In today’s Annual General Meeting of the shareholders of Marfin Popular Bank, the shareholders have authorized the Board of Directors of the Bank to initiate negotiations with the Board of Directors of the Bank of Cyprus regarding a friendly strategic cooperation agreement. The relevant agreement will provide for a full integration of the international operations of the two Banks outside of Cyprus, and in the medium term assuming that circumstances are right, a full merger between the two financial institutions.
Marfin shareholders voted that these proposals should be made on the condition that the shareholders of Bank of Cyprus also authorize their board to engage in these negotiations on the basis of:
1. The negotiations to be the outcome of willingness for an amicable and professional cooperation of the shareholders of the two Banks for their benefit.
2. Any debating issues between the Management of the two Banks to be resolved through the shareholders of the two Banks. The authority for final decision about such important strategic matters lies solely with the shareholders.
During the Annual General Meeting, Marfin Popular Bank’s management presented its estimates for the benefits from a cooperation agreement between the two banks.
Under the assumption of combining the two banks’ international operations, earnings of the combined entity should be enhanced by €79.3m for the first year, €163.5m for the second year and €236.3m for the third year of cooperation.
In the event of a full merger scenario, earnings should be enhanced by €142.9m for the first year, €278m for the second year and €361.2m for the third year of cooperation. The above numbers are based on Marfin Popular Bank’s estimates and they could be subject to revision upon the provision of more detailed information of the management of the two banks.
