Start of merger procedure of Marfin Popular Bank with its subsidiary Marfin Egnatia
18/5/2009 8:08
The Board of Directors of Marfin Popular Bank (MPB) and its subsidiary Marfin Egnatia Bank (MEB), after convening today, have taken the decision to commence the process of merging the two Banks through the absorption of MPB by MEB with the transformation date being 30/6/2009.
The proposed merger is aiming to:
•Improve the Group's strategic flexibility in view of its anticipated expansion both within the Hellenic space and the broader South-East European region.
•Strengthen the Group's capital base. The Group's capital base is estimated to expand by 10%, corresponding to 82 bps improvement on the Group's total capital ratio (CAD) from 11,3% to 12%.
•Benefit from the provision of the Greek Law to execute share buyback programs with a view to facilitate the Group's strategic expansion. Furthermore, to enable the Group's major shareholders to transact on the Bank's stock without being subject to the restrictions of the closed period according to the Cyprus Legislation.
The proposed merger is expected to strengthen the Group's medium term profitability as its enlarged capital base will enhance the Bank's lending capacity. It is anticipated that higher revenues should offset any potential negative impact from changes in the Company's tax status.
The proposed transaction is subject to approval by the two Groups' shareholders' assemblies and the competent regulatory authorities.
Upon completion of the merger, MPB's management, in co-operation with Central Bank of Cyprus, will seek to establish a Cyprus-based banking subsidiary that will undertake the Group's banking business in Cyprus.
MPB's management believes that the implementation of the proposed merger will boost the Group?s growth prospects, it will enhance shareholder value and will create further employment opportunities in both Cyprus and Greece.
The proposed merger is aiming to:
•Improve the Group's strategic flexibility in view of its anticipated expansion both within the Hellenic space and the broader South-East European region.
•Strengthen the Group's capital base. The Group's capital base is estimated to expand by 10%, corresponding to 82 bps improvement on the Group's total capital ratio (CAD) from 11,3% to 12%.
•Benefit from the provision of the Greek Law to execute share buyback programs with a view to facilitate the Group's strategic expansion. Furthermore, to enable the Group's major shareholders to transact on the Bank's stock without being subject to the restrictions of the closed period according to the Cyprus Legislation.
The proposed merger is expected to strengthen the Group's medium term profitability as its enlarged capital base will enhance the Bank's lending capacity. It is anticipated that higher revenues should offset any potential negative impact from changes in the Company's tax status.
The proposed transaction is subject to approval by the two Groups' shareholders' assemblies and the competent regulatory authorities.
Upon completion of the merger, MPB's management, in co-operation with Central Bank of Cyprus, will seek to establish a Cyprus-based banking subsidiary that will undertake the Group's banking business in Cyprus.
MPB's management believes that the implementation of the proposed merger will boost the Group?s growth prospects, it will enhance shareholder value and will create further employment opportunities in both Cyprus and Greece.
