Cyprus Development Bank sold for EUR 75 mln

The government agreed to sell its controlling stake in the Cyprus Development Bank to a private investment group made up of high net worth Cypriots mostly based overseas for EUR 75 mln or CYP 43.8 mln, of which 88.01% will go to the state and the remaining 11.99% to the European Investment Bank.

The Emerging Financial Partners is the Cypriot owned group which won the bid for control of the CDB. The grouping, made up of many top Cypriot personalities based in Cyprus, Greece and the UK is headed by Adonis Papadopoulos, who through his Path Holdings is a major shareholder in Universal Bank (USB) and is actively involved in shipping and investment activities, including a significant stake in the CLR Group.

The Cyprus Development Bank with a 0.7% share of Cyprus’ lending market and own capital of CYP 25 mln or EUR 43 mln was previously the subject of an arranged sale to the Piraeus Bank, which collapsed and it was also dragged into investing into the Krassnodar region of Russia by the then President of the Republic, George Vassiliou who wanted to develop closer business ties with then Russian President Yeltsin.
Finance Minister Michalis Sarris said during the signing ceremony that the bid by Emerging Financial Partners was the most favourable, which is why the Cyprus government and the European Investment Bank decided to agree to the deal. Sarris did not mention how many other groups had submitted bids or if the bid by Emerging Financial Partners was the only one.

On behalf of EFP, Adonis Papadopoulos said his group plans to increase CDB’s presence in the local market through the development of its branch network and also explore new opportunities abroad.

The deal is subject to regulatory approval from the Central Bank of Cyprus. Some of the other shareholders of EFP in addition to Adonis Papadopoulos through his stake in Path Holdings and Interorient Navigation Co. Ltd., are: Andreas Pittas (Medochemie), Antonis Gerolemou (co-founder Katsouris Fresh Foods- UK), Constantinos Shacolas (General Manager J&P Overseas), K.J. Pittalis family (active in the UK), Panicos Katsouris (co-founder Katsouris Fresh Foods – UK), ELA Group owned by Andreas Ellinas active in Greece), Leventis and David families, Leonidas Ioannou (J&P), Portolano Maritime Inc of Charalambos Milona (shipping-Greece) and CLR Investment Fund (CSE quoted with stakes in many companies).

The EFP joint venture was organized and is being guided by Spyros Papa, fund manager and businessman based in Greece and Neoclis Nicolaou.