Government approves in principle deal on CCB following Hellenic Bank’s offer

The government of Cyprus has approved in principle a deal on the Cyprus Co-operative Bank, following the offer submitted by the Hellenic Bank to buy out the bank.

In statements after the Council of Ministers meeting on Friday, Minister of Finance Haris Georgiades said that the Hellenic Banks offer to acquire part of the portfolio of the Cooperative Bank was in principle acceptable, but subject to the submission of the plan regarding the shareholding structure.

According to the offer, the Hellenic Bank undertakes to pay the whole amount of the clients’ deposits worth 9.7 billion euro and assumes assets of 10.3 billion euro, including loans, bonds and cash as well as non-performing loans of 0.5 billion. Assets of the Cooperative amounting to 8.3 billion euro will be taken over by the state, most of which is non-performing loans.

As regards the Cooperative Bank’s personnel, the Minister said that the Hellenic Bank assumes the responsibility of employing 1.100 staff members and operating 72 Cooperative branches.

The deal is subject to the approval of the European Union, Georgiades noted.

Meanwhile, an announcement earlier from the Hellenic Bank says that further to Hellenic Bank Public Company Limited’s announcement on the 13th April 2018 that it is participating in the tender process initiated by Cyprus Cooperative Bank Ltd and 14th May 2018 that it submitted an offer, the Company announces that it submitted today a final offer for the acquisition of certain assets and liabilities of CCB, which is subject, amongst other things, to a capital raise of the Company.

The Company will keep investors informed of any developments on this matter to the extent required by applicable laws and regulations, the press release concludes.

Source: Cyprus News Agency