Marfin Financial Group is reported to have received strong bid interest from foreign institutional investors for the private placement of up to 110 mln Laiki Bank shares, which is expected to be completed “within days” according to reliable sources.
Marfin needs to dispose of the shares that it holds in Laiki (15.32%) and the process for the placement of at least 11.9 mln shares of Egnatia in which Marfin holds a 43% stake is well in progress.
Citigroup Global Markets and Deutsche Bank AG, London Branch, the Joint Bookrunners and Keefe, Bruyette & Woods Ltd., the Joint Lead Manager announced the placement of up to 54.746.319 shares of Marfin Popular Bank (MPB), formerly Laiki Bank that represent 15.32% of the capital through the accelerated book building method.
As part of the agreement, Dubai Financial LLC has agreed to purchase 18.874.093 shares of MPB at the same price that will be determined in the book building method, which will be fixed for the balance of 35.872.226 shares of MPB, according to the Greek financial web site euro2day.gr.
Citigroup and Deutsche Bank are reported to have placed on behalf of Marfin at least 11.9 mln shares of Egnatia Bank to a group of selected institutional investors.
Any remaining shares of Egnatia that will be held by Marfin will be offered during the public offer that Marfin Popular Bank will submit for the shares of Egnatia and later on for MPB shares that will be issued in exchange for the Egnatia shares and will be blocked for 180 days (barring the possibility of selling the shares in total or part of the remaining shares of Egnatia to two strategic shareholders, who will be committed for the remaining 180 days period.)
Marfin Vice-Chairman Andreas Vgenopoulos had previously told analysts when presenting the 9M06 results that “Marfin will book a profit of EUR 220-260 mln if all the shares were to be placed and will be included in the 4Q06 results.”
The private placement is being made with the full knowledge of the Marfin Popular Bank, according to the report. Meanwhile, Marfin Popular Bank announced that the Cyprus SEC has approved the prospectus of MPB (formerly Laiki Bank) for the issue of shares in exchange for the acquisition of Marfin Financial Group and Egnatia Bank and their listing on the CSE and the ASE.
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