Ross wants ex-Deutsche Ack­er­mann to head BOCY

Financial Mirror (Cyprus) - - FRONT PAGE -

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.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.