Marfin, Laiki, Egnatia start merger process

The Board of Directors of Marfin Bank, Laiki Bank Hellas S.A. and Egnatia Bank S.A., agreed to start the process of the three-way merger, which aims to create one of the largest banking groups in Greece.

Marfin Group Vice-Chairman Andreas Vgenopoulos said Marfin Bank and Laiki Bank Hellas S.A. will be merged under Egnatia Bank S.A, in view of the fact that Egnatia is already a listed company on the ASE.

The effective date for the merger transfers has been set as 31 December 2006, but it has not been clarified whether the valuations will be based on net asset value, revenue, number of customers or a combination.

The merger completion is subject for approval by the respective Annual General Meetings of the three banks, which will take place within the first quarter of 2007, as well as subject to the approval of the regulatory authorities of Greece and Cyprus.

Additionally, the Boards of Investment Bank Greece and Egnatia Finance agreed on the commencement of their merger process with the latter being absorbed by the former. The merger will be effective as of 30 June 2006.

Following the tri-party merger the new entity is expected to have net assets of EUR 8.2 bln, deposits of EUR 6.2 bln and loans of EUR 5.8 bln and total capital and equity of EUR 9 bln.

The new entity would sum a 140 retail branch network and command a 4% share of the Greek deposit market and 3.3% of loans.

In financial services operations, the new entity is expected to have a 10% market share and equity transactions close to 18% of the FTSE20 and FTSE40. The total number of staff are seen at 3.000.