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Marfin Popular Bank (MPB) shareholders approved the 15 cent final dividend for 2008 during the Bank's Annual General Meeting held on Tuesday in Nicosia. MPB vice-chairman Andreas Vgenopoulos briefed on Tuesday the shareholders of the Group on the decision to merge with Greek subsidiary Marfin Egnatia and move its headquarters to Greece.
Addressing the Annual General Assembly, Vgenopoulos outlined the three objectives of the Marfin Popular Bank Group which contributed towards this decision, while he made it clear that “Marfin will not leave Cyprus”.
He went on to say that the first objective “is to improve the strategic flexibility of the Group in view of potential expansion of its business in Greece and the region of Southeast Europe”.
The second objective, he added, relates to the important enhancement of the Group's capital base by around 10% with the ratio of the total regulatory capital rising from 11.3% to about 12%. This objective relates to the ability of the Group to become competitive on an international level in order to expand, he said.
Regarding the third objective, Vgenopoulos said that this has to do with the important flexibility the Bank’s shares in Greece would provide, since, as he explained, in Greece there is a possibility to purchase own shares.
Marfin Popular vice-chairman noted that “nothing will essentially change, with the move of the headquarters to Greece, as regards the Group’s businesses both in Cyprus and internationally”.
Vgenopoulos made it clear that Marfin will not leave Cyprus, noting that the change of the bank’s headquarters would result in a Cypriot bank under the name Marfin Popular the size of which would be much larger than that of 2006, when the Group took over the Popular Bank.
He said that June 30th is the set date for the move, adding that the entire process is likely to take place over a period of 4-5 months.
Vgenopoulos said Marfin Popular Bank in Cyprus was facing problems which prevented it from further expansion and referred in particular to an “economic establishment” in Cyprus which operates ''as imperium in imperio”.
Shareholders expressed concern regarding the relocation of the Group in Greece and called on Vgenopoulos and Board of Directors of the Group “to make second thoughts with regard to this decision and consider alternative solutions”.
