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Bank of Cyprus completed the acquisition of the Ukrainian bank AvtoZAZbank on May 26, 2008, having obtained the relevant approvals from the supervisory authorities in Cyprus and Ukraine. Bank of Cyprus will therefore dynamically commence to provide banking services in Ukraine.
The Bank of Cyprus Group expansion is in line with its strategic plan in countries with significant economic growth potential, large population, relatively low banking penetration and a high degree of recognition for Bank of Cyprus. Bank of Cyprus will provide full banking services in Ukraine, also leveraging on its significant number of established relationships with businesses operating in this country.
Bank of Cyprus acquired 97.2% of the share capital of AvtoZAZbank today for the sum of EUR57,9 mln paid in cash.
AvtoZAZbank was established in 1991 and provides full banking services. The Bank’s head office is located in Kiev and it operates through a network consisting of 26 branches and 18 seasonal cash offices located in four main regions of Ukraine. The Bank employs 365 people. According to its audited financial statements at 31 December 2007, the net assets of the Bank amounted to EUR 16 mln, total loans amounted to EUR 98 mln and total deposits to EUR 76 mln.
The Board of Directors of Bank of Cyprus Ukraine will comprise of Messrs Andreas Eliades (Chairman), Yianni Kypri, Antonis Tziakouris, Christis Hadjimitsis and Kyriakos Iakovides.
With regard to its Ukrainian operations, Bank of Cyprus has appointed Bairaka Vladyslav Mykhailovych as General Manager Bank of Cyprus Ukraine. Mr Bairaka Vladyslav Mykhailovych has served as Chairman of AvtoZAZbank during the last six years, and he has experience in managerial positions at other local banks. In addition, Bank of Cyprus has also appointed an experienced team of Cypriot employees in key positions, headed by Nicos Sofroniou who will assume the position of Deputy General Manager of AvtoZAZbank.
On the occasion of the acquisition of AvtoZAZbank, the Chief Executive Officer of Bank of Cyprus Group referred to the growth potential of the Group in Ukraine and stated: “We feel confident that our expansion in Ukraine via the acquisition of AvtoZAZbank will contribute significantly towards the achievement of the Group’s strategy to become a powerful banking group in the region of South-eastern Europe “.
The General Manager of Bank of Cyprus Ukraine Bairaka Vladyslav Mykhailovych referred to the benefits that can be derived from the acquisition of a growing Ukrainian Bank by a dynamically expanding regional bank and stated: “The acquisition will allow the further expansion of AvtoZAZbank, encourage foreign investment in the country and create new jobs in the banking sector and the economy in general “.
According to Cyprus Stock Exchange regulations, it is also announced that the acquisition of AvtoZAZbank is executed on a purely commercial basis.
