Marfin Popular acquires Egnatia Cyprus

Marfin Popular Bank Public Co Ltd announced that it has agreed to acquire 49% of the share capital of Egnatia Financial Services (Cyprus) Limited, which is held by a number of shareholders.  Within 5 business days, Marfin Popular Bank Public Co Ltd will proceed with the acquisition of the remaining 51% of the share capital of the Company, which is currently held by its subsidiaries Egnatia Brokerage SA and Egnatia Bank SA.  As a result, the total share capital of the Company will be held directly by Marfin Popular Bank Public Co Ltd.

The total price for the acquisition of 100% of the share capital of the Company will stand at CYP2,882,558 or EUR 4.9 mln and will be paid in cash.  For the above acquisition, the Company assigned the preparation of a due diligence to Moore Stephens Stylianou & Co.  It is noted that no external consultant was involved in the acquisition of the share capital 

The goodwill that will result from the acquisition of 100% of the share capital of the Company was preliminary calculated at CYP600,000 or EUR 1 mln.  This goodwill will be subject to a depreciation control. 

Egnatia Financial Services (Cyprus) Limited was established in Cyprus on October 18, 2001.  The Company is actively involved in the provision of main investment services of transfer and receipt  on behalf of third parties, the orders for the conduct of transactions to financial means, the execution of orders, the management of the customers’ investment portfolios, the underwriting of issues and disposal of financial means and a number of subsequent services, as they are described in the Company’s license granted by the SEC (No. 006/03). 

The total authorised, issued and fully paid share capital stands at CYP2 mln, which is composed of 2,000,000 shares of nominal value CYP1 each. 

The shareholders of the Company before the acquisition were Egnatia Brokerage SA with 920k shares or a 46% stake, Sciens Eastern Med LLC with 400k shares or 20% stake, GAEA Nominees with 160k shares and a 8% stake, Marios Hadjiyiannakis, the CEO who left the company for a top management position in Renaissance Capital with a 160k shares or 8% stake and smaller stakes held by Takis Kyriakides (120k, 6%), Egnatia Bank SA (100k, 5%), Vasos Paraskevas (100k, 5%) and Christos Homatas 40.000 and a 2% stake in the firm.

According to the Company’s audited financial statements for 2006, the total income stood at CYP1.98 mln, while the profit after taxation reached CYP607.000. According to the audited financial statements as at December 31, 2006, the shareholders’ interest stood at CYP2.26 mln.