The merger between Laiki Investments, a member of Marfin Popular Bank subsidiary and CLR Capital has gone ahead smoothly, creating Marfin CLR Public Co. Ltd., Cyprus’s largest financial services firm both in terms of volume transacted on the Cyprus Stock Exchange and the number of active clients.
Two of the people who worked hard to make the deal happen, Athos Chandriotis (former GM of LI) and now General Manager of Marfin CLR (Financial Services) Ltd, and Caliope Toumpouri (formerly with CLR) and now a manager at the new firm, talked to the Financial Mirror about their experience and their vision as to where they see Marfin CLR in the future.
“This is the first time that a Cypriot bank-owned firm decided to acquire and merge with a private-sector company and I can assure you that it was no easy task,” said Chandriotis, who added that, “from January 1, 2009 all systems were running smoothly and without any problems.”
Toumpouri added that Marfin CLR has now merged the operations of LI, Egnatia and CLR Capital, implementing new systems software applications and new procedures, which have made the firm more dynamic, lean and ready to respond to fast changing developments in capital markets in Cyprus, Greece and elsewhere.
Following the merger, the principle shareholder in Marfin CLR is Marfin Popular Bank Public Co. Ltd with a 55% stake, followed by the Panayiotides/Toumpouri families with a combined 15% stake.
BIGGEST
Marfin CLR (Financial Services) Ltd., is the company through which the Group offers financial services, investment banking, asset management, brokerage and research to its clients.
The firm now has 73 staff (45 CLR, 19 LI and 6 Egnatia) compared to 107 before the merger, with the excess staff having found employment with other Marfin Popular Bank group companies through a voluntary relocation scheme.
“We are happy that all employees who wished so found employment within Marfin Popular Bank,” said Chandriotis. All staff are now members of the Bank Employees Union, Etyk.
Marfin CLR is now also the largest financial services firm transacting business on the Cyprus Stock Exchange with a 24.5% share in January 2009. It also has 25,000 active clients, which according to Chandriotis, makes it the largest in Cyprus.
NEW CULTURE
Toumpouri said the most important element – that of merging the different cultures – has been successfully achieved, since Marfin CLR is now acting as one unit with the backing of Marfin Popular Bank Group.
And the new entity is also benefiting from other cost synergies, such as having one KEPEY instead of four previously, having one listed company instead of two before, operating from a single premises — thus saving rent and other office expenses, one back office instead of three before and also achieving tremendous savings on licenses, guarantees and capital requirements. More savings are made on joint marketing and promotion.
OBJECTIVES
Marfin CLR’s immediate objective is to maintain and increase its leading position in the local market and become the number one remote player in Greece.
Chandriotis and Toumpouri said that 2009 will be a very tough year for capital markets and the economies of Cyprus and Greece, but they agree that the US and then UK markets will have better turnaround prospects towards the end of the year.
Chandriotis sees tremendous growth opportunities in overseas markets, which is why he says the Group’s electronic trading platform called Laiki Global e-trading will be heavily promoted among clients and other investors.
This dedicated trading platform allows users to trade international shares, CFDs, futures and ETFs on four major currencies (euro, dollar, sterling and Swiss francs) through one single bank account and platform.
The introduction of 10% capital gains tax on equity transactions for locals by Greece from April 1, 2009, may create new opportunities, which Marfin CLR wants to fully utilise and capture a bigger share of a possible shift in business to Cyprus, since according to Greek legislation, foreigners are exempt from Greek capital gains tax.
Chandriotis also said that Marfin CLR aims to consolidate its position as the number one asset manager and corporate financial advisor in Cyprus.
Marfin CLR Public Co. Ltd received World Finance magazine’s award of Best Financial Services Provider in Cyprus for 2008, the first time that a KEPEY is awarded such a prize.
