Marfin to raise EUR 5 bln in new capital

The Board of Directors of Marfin Financial Group decided the terms of the capital increase that the General Meeting will propose on Thursday, March 29, 2007.
The meeting is expected to approve a share capital increase of EUR 5,19 bln, with the share price offer fixed at EUR 6.70 per share of nominal value EUR 0.54 as a total of  774,660,278 new shares, corresponding to 14 new shares for 1 old share will be issued. MFG has submitted a request to the Athens Stock Exchange for the, if necessary, adaptation of the regulatory framework taking into account the characteristics of the proposed share capital increase. The share capital increase will finance the new activities of the Company, which will mainly concentrate on buyouts and equity investments in Greece, Cyprus and the South-eastern Europe region.
The Board of Directors has been informed that Marfin Popular Bank, the main shareholder with 95%, has decided not to exercise its preferential rights for the capital increase.
Furthermore the Board will propose to the General Meeting of the shareholders the distribution and return of capital of EUR 10.92 per share and EUR 4.41 as a dividend i.e. totally EUR 15.33 per share.
The Board of Directors will also propose the renaming of the Company to MARFIN INVESTMENT GROUP (MIG) and the Shareholders Meeting will elect the new Board of Directors.