Ross wants ex-Deutsche Ackermann to head BOCY
As a parting gift, the current board had to approve the final part of its recapitalisation plan, to include 100 mln euros worth of shares offered to retail and old investors at 24c each, as was the case with institutional investors, with the total recapitalisation adding up to 1.1 bln. Once this is completed, the bank’s adjusted share register will determine the new ownership and the stock will be ready to resume trading on the Cyprus Stock Exchange.
Shareholders controlling more than the 5% threshold include the ‘Legacy Laiki’ of the dissolved Laiki Popular Bank at 9.6%, two funds introduced by Ross – Renova Group with 5.46% and TD Asset Management with 5.23% – and the EBRD, with a holding of 5,021%.
It was also expected that the November meeting will elect a new board, but it was not clear which of the present directors would seek re-election.
The recapitalisation came about from the issue, initially by private placement to strategic investors, of 4.17 bln new shares at 24c each, the same price offered to all three categories of new, existing and old shareholders. As a result, the bank’s issued share capital now comprises 8.9 bln ordinary shares with a nominal value of 10c each.
In statements after the last shareholders’ meeting at the end of August, when the bank announced a total of EUR 81 mln in post-tax profits for the first half (Q1: 31 mln), CEO John Hourican had said that approval of the capital increase would boost the bank’s liquidity ratios far beyond the requirements of the European Banking Authority’s stress-test scenarios.
The Group’s capital position was strengthened with Core Equity Tier 1 ratio increased from 10.5% in end-December to 11.3% as at June 30. Combined with last month’s decision on the EUR 1 bln capital increase, the bank’s Core Equity Tier 1 ratio is now expected to hover at 15.6% (transitional basis) and 15.1% (fully-loaded basis) making it “one of the best capitalised banks in Europe,” the CEO had declared.
About EUR 900 mln raised from the capital increase has already returned to Frankfurt’s coffers as part of the bank’s efforts to reduce its exposure to high-interest Emergency Liquidity Assistance (ELA) to near or below 2 bln euros by the end of 2017.