Cyprus M&A deals reach record CYP 1.7 bln

…Greek investors chase Cyprus banks, companies

Mergers and acquisitions involving Cypriot companies reached a record CYP 1.69 bln, or EUR 2.94 bln in 2006 amid an unprecedented wave of intense activity in the banking sector, with Greek investors dominating the scene as they chased undervalued Cypriot banks, manufacturing and investment companies.

A total of 48 deals were announced directly related to Cyprus or involving a Cypriot company, of which CYP 451.15 mln involved cash deals and CYP 1.24 bln were equity swaps for a total of CYP 1.69 bln, according to the annual M&A Survey conducted by the Financial Mirror.

M&A activity in 2006 is the highest according to Financial Mirror data and is more than triple the previous record of CYP 439 mln transacted in 2000 at the height of the previous bull market.

The acquisition by Marfin Popular Bank (formerly Laiki Bank) of majority stakes in Marfin Financial Group SA of Greece, Egnatia Bank SA of Greece and the minority stake in Laiki Hellas SA through a share issue valued at CYP 1.24 bln or EUR 2.14 bln is by far the biggest M&A deal of 2006.

(full article with charts in the print edition of FM or the archive section of the web site, fully accessible to subscribers)