Marfin Financial Group is reported to have asked the Central Bank of Cyprus permission to raise its stake in Laiki Bank from the current 9.98% to 20%, in a move that is related to an attempt to create a new banking group involving the two institutions and Egnatia, in which recently Marfin assumed a controlling stake.
The objective of Marfin Vice Chairman Andreas Vgenopoulos is to create a new bank that would rank among the top 3-4 in Greece, with more details expected to be revealed during the EGM of Marfin, set to take place on April 13.
Vgenopoulos will probably wait until May 15 in order to seal the deal through which the Dubai Fund has agreed to take a significant stake in Marfin.
Next, Marfin will seek to increase its stake in Laiki to 20%, for which it has already applied to the Central Bank of Cyprus. This may be done by purchasing the 8.18% stake held by Tosca Investment Fund, which already holds a 6% plus stake in Marfin, and more shares through the forthcoming rights issue of Laiki, for which Marfin is the sole underwriter.
Greek press reports suggest that Marfin will pay around EUR 90-95 mln to purchase the Tosca stake, while any unexercised rights of Laiki will be acquired at the price of CYP 1.20, less dividend, or CYP 1.14 per share compared to the current CYP 2.60 price prevailing on the CSE.
Meanwhile, Laiki Chairman Kikis Lazarides in an interview with Politis on Sunday confirmed that a new Super Bank is set to be created through the merger of the operations of Marfin, Egnatia and Laiki Hellas, in which the Laiki Bank Group may have a 40% stake depending on the net worth of Laiki Hellas.
Lazarides says that when the new grouping is formed, the prospects of the Group will be excellent, considering that the Dubai Fund is a shareholder with billions of dollars available to be invested.
“The Dubai Fund capital will allow the group to proceed with its ambitious expansion plans,” Lazarides said in the interview.
He added that after the expansion of Laiki in Serbia, the Group will next expand into Estonia by purchasing a bank owned by Marfin to be followed by a new acquisition in Romania.
Laiki also wants to take a stake in a new private banking firm to be set up in the UK at a cost of some CYP 100.000 for a 50% stake, aiming to raise GBP 1 bln of funds under management in the first two years of operation. The first year, the new venture will aim to attract GBP 300 mln of funds, and the second year at least GBP 800 mln.
