Sehnaoui takes control of Piraeus Cyprus in € 40 mln deal
Lebanese banker Maurice Sehnaoui, who has controlling stakes in USB Bank and Societe Generale Cyprus through parent company BLC Bank SAL, and other investors have acquired a majority stake in Piraeus Bank Cyprus in a deal that involved a EUR 40 mln capital increase.
The Greek parent Piraeus Bank did not partake in the capital increase and has now reduced its stake in the Cyprus subsidiary to 17.7%.
A statement issued by Holding M. Sehnaoui SAL said that the European Central Bank, following a recommendation from the Central Bank of Cyprus, had approved the deal.
“A capital increase at the amount of EUR 40 mln was completed which raises the Core Equity Tier 1 capital ratio of the Bank to a level in excess of 15%, significantly above the minimum regulatory requirement. In parallel, HMS has acquired a direct stake in PBC such that Piraeus Group’s participation in Piraeus Bank Cyprus stands at 17.7%. PBC’s capital increase and the addition of experienced international bankers as shareholders of the bank materially improve the prospects of PBC and its capacity to harness the benefits stemming from the growth in the economy activity in Cyprus, as well as the improvement of the banking sector, by further enhancing its activities and increasing its market share.”
“The lead new investor in the Bank, with approximately the same participation as Piraeus Group, will be the Chairman of HMS, Maurice Sehnaoui, a Lebanese banker with international experience exposure in Lebanon, Jordan and Cyprus. He has successfully managed many banks for more than 30 years as President, CEO and shareholder, continuously introducing innovative products and practices,” the statement said.
“We will put forward our ambitious plans for the strengthening of the bank and the expansion of its activities in Cyprus. We expect strong growth and profitability that will benefit not only our diversified shareholding base but also our customers, our employees and the economy at large. We are strong believers in the economic prospects of Cyprus and we are confident of the further and con t inuou s development of the country. We trust both the management and the staff of Piraeus Bank Cyprus, as through adversity and tough conditions, they have managed to increase the client base and the international business activities of the Bank,” Sehnaoui said in a statement.
It is not yet clear if PBC will remain a separate entity or if it will be merged with Societe Generale Cyprus and USB Bank.
According to Bloomberg, Maurice Nicolas Sehnaoui has been the General Manager of BLC Bank SAL since 2008.
It is a Lebanese financial institution offering banking, insurance and asset management services and its subsidiaries include USB Bank PLC - Cyprus (95.61% share), BLC Finance SAL, and BLC Services SAL.