Marfin Financial Group will take more than 50% of the new bank that is likely to emerge from the merger of operations of Marfin, Laiki Hellas and Egnatia Bank, according to Marfin Vice-Chairman Andreas Vgenopoulos.
Speaking at the AGM of the Bank, Vgenopoulos said the triple-way merger is proceeding according to plan and are expected to start from June with the objective to be completed by the end of 2006, with Marfin set to control more than 50% of the new set up.
The new group will have EUR 21 bln in assets and about 150 retail branches in Greece.
Vgenopoulos said most of the recent capital increase of EUR 400 mln has been spent, with the Group now left with about EUR 50 mln. The Marfin Group has the ability however to tap into proceeds from bond issues that may reach up to EUR 600 mln.
“The recent acquisitions have created EUR 95 mln in value,” said Vgenopoulos, adding that Management target of delivering EPS of 1.6 euros for 2006 is well on track.
The Marfin AGM also approved to scrap a previous term according to which takeovers could only proceed if these were at a cost of 1.5 times P/BV and 15 times P/E.
The AGM of Marfin also approved a proposal to distribute 0.05 euro per share from reserves accumulated from previous years.
There was no mention of the fact that Marfin Financial Group has asked the Central Bank of Cyprus permission to raise its stake in Laiki Bank from the current 9.98% to 20%, in a move that is related to an attempt to create a new banking group involving the two institutions and Egnatia, in which recently Marfin assumed a controlling stake.
Vgenopoulos will probably wait until May 15 in order to seal the deal through which the Dubai Fund has agreed to take a significant stake in Marfin.
Next, Marfin will seek to increase its stake in Laiki to 20%, for which it has already applied to the Central Bank of Cyprus. This may be done by purchasing the 8.18% stake held by Tosca Investment Fund, which already holds a 6% plus stake in Marfin, and more shares through the forthcoming rights issue of Laiki, for which Marfin is the sole underwriter.
Greek press reports suggest that Marfin will pay around EUR 90-95 mln to purchase the Tosca stake, while any unexercised rights of Laiki will be acquired at the price of CYP 1.20, less dividend, or CYP 1.14 per share compared to the current CYP 2.60 price prevailing on the CSE.
Meanwhile, Laiki Chairman Kikis Lazarides also confirmed that a new Super Bank is set to be created through the merger of the operations of Marfin, Egnatia and Laiki Hellas, in which the Laiki Bank Group may have a 40% stake depending on the net worth of Laiki Hellas.
He added that after the expansion of Laiki in Serbia, the Group will next expand into Estonia by purchasing a bank owned by Marfin to be followed by a new acquisition in Romania.
