Laiki Bank Group and Marfin Financial Group are proceeding rapidly to strengthen their ties with a view to take advantage of their complimentary services in an effort to maximise profits for the benefit of shareholders from both groups.
Laiki Chairman Kikis Lazarides and Marfin FG Vice-Chairman Andreas Vgenopoulos told reporters during a joint press conference in Nicosia on Thursday that the objective remains to strengthen ties between the two groups, and pursue Laiki’s dynamic expansion plans abroad.
Earlier, Marfin purchased a 9.98% stake in Laiki from HSBC, which sold its 21.16% stake in Laiki. Marfin, which purchased the Laiki shares at CYP 1.70 per share at a total cost of CYP 51.98 mln is now Laiki’s biggest shareholder. The remaining stake of HSBC was purchased by the Tosca Investment Fund, which absorbed 8.18% at a total cost of CYP 42.62 mln and 3% worth CYP 15.62 mln, which was sold to Laiki Nominees on behalf of the 3.500 Laiki staff employed in Cyprus and abroad.
Vgenopoulos said that because HSBC wanted to quickly dispose of its shares in Laiki, Marfin was obliged to take a stake just under the maximum 10% level, which does not require Central Bank of Cyprus permission.
“Otherwise, if they would allow us time to secure a permit from the Central Bank, then we would have aimed to acquire all 18% of the available shares,” said Vgenopoulos who said Marfin’s entry as a stakeholder was warmly welcomed by the Management of Laiki, adding that there is a “fantastic working relationship” between the two sides.
LAIKI HELLAS
Lazarides and Vgenopoulos dismissed rumours appearing in the Greek press according to which Laiki would allow Marfin to take a 30% stake in the share capital of Laiki Hellas when the latter proceeds with plans to float on the Athens Stock Exchange.
“I can categorically state that we have not discussed such a plan, and let me assure Laiki shareholders that we will not do anything to harm their interests,” Lazarides responded to a Financial Mirror question regarding fears that Marfin would gain an unfair advantage if it was allowed to purchase a 30% stake of Laiki Hellas.
More assurances regarding correct corporate practises and accountability were given by Vgenopoulos who stressed that, “as a Laiki shareholder, we would never back the Group parting with 30% of its Greek operations and sell it to another group, including to Marfin.”
Lazarides and Vgenopoulos stressed to the Financial Mirror that the benefits of the tie up would come from the utilisation of the complimentary services offered by each group.
Lazarides said that Laiki Group was particularly strong in retail banking, small to medium sized and large corporations, e-banking, insurance, factoring, leasing and other services while Marfin is specialised in investment and private banking and asset management to name a few.
“Our experiences and know-how, each in its own respective fields will be utilised to create additional wealth for both sides,” said Lazarides.
This was echoed by Vgenopoulos who stressed that both sides will put additional emphasis on accelerating Laiki’s international expansion plans.
Both officials stressed that as soon as the plans regarding the future cooperation agreement is completed, then it will be announced.
