Marfin Popular acquires Bank in Malta

Marfin Popular Bank Public Company Ltd (CPB) announced that it has reached an agreement for the acquisition of 43% of Lombard Bank Malta PLC (LBM) for EUR48.3 mln. The finalization of the agreement is subject to the approval of the relevant authorities in Cyprus and Malta.

LBM was established in 1969, is the third largest bank in Malta, offers a complete range of banking facilities, its headquarters are in Valetta and operates in Malta with a network of 6 branches. Based on the 1H 2007 results, LBM reported profits of EUR3.2 mln and had shareholders funds of EUR47.2 mln, loans of EUR331.6 mln and deposits of EUR410.4 mln according to Sharelink Research. The implied P/B multiple at which the 43% stake in LBM has been acquired is estimated at around 2.4x by Sharelink. Provisionally Sharelink estimate that CPB’s expansion in Malta should be value-enhancing for the Group in the longer-term. This acquisition is in line with one of CPB’s medium-term strategic priorities to expand its international business banking activities in conjunction with Malta’s prospects for further growth and consolidation of its position as a significant international financial centre.