Cyprus Dev. Bank reviews privatization proposals

The Cyprus Development Bank announced that the process to sell the government’s 88,01% stake and the European Investment Bank’s remaining 11.99% is proceeding smoothly after the deadline for expressions of interest expired on July 17.

“A number of European interested parties, from within and outside the European Union, the Middle East, Asia and America have expressed their intent in writing,” the CDB said in an announcement, adding that HSBC is acting as advisor.

The potential investors are now expected submit non-binding bids by September 7.

According to CDB’s CEO, Takis Taoushanis, “for CDB to attain its future prosperity and growth in an open and highly competitive banking environment, the search for a new owner becomes imperative. With a new ownership structure, which will provide the appropriate know-how and funding, the bank will be in a position to expand and move to new areas of banking. This will ensure its long-term success and enhance its contribution to the further development of the Cyprus economy”.

The present conditions in the Cyprus Banking sector are considered conducive for the contemplated change in ownership of the institution. The recovery of the stock market, in conjunction with the forces that have been shaping the domestic banking industry as of late, have created a favourable environment which is expected to facilitate keen interest in CDB by investors. The disposal process will, no doubt, be facilitated to no small extent, by the marked improvement in CDB’s financial results, with profits reported over the last two years.