Marfin in EUR 5 bln capital increase

The Board of Directors of Marfin Financial Group decided to proceed with Greece’s largest capital increase, by calling up EUR 5 bln in new capital, which will be used for new takerovers and expansion of operations. The Board also decided to change the name to Marfin Investment Group and focus on buy-out and equity investments in Greece, Cyprus and SE Europe.

Marfin Financial Group has also decided to return EUR 850 mln capital to shareholders, but at the same time, it wants to sell Marfin Bank’s assets to Marfin Popular bank at a price of EUR600 mln, without elaborating why MPB needs to pay EUR 600 mln for the Bank since it already owns it by holding 95% of MFG shares.

Meanwhile Marfin Investment Group will offer fund management services to MPB at 1% annual fees.