€ 26.5 mln raised from sale of Co-op companies up to 2017
The Cypriot Asset Management Company (KEDIPES), wholly-owned subsidiary of the legacy Co-operative Bank, is looking to hire consultants to advise it on how the entity, currently acting as the Co-op’s NPL managing body, is to operate in the future.
According to a source close to the defunct Co-op, the company will call for tenders from consultancy firms to offer advice on the legal framework under which KEDIPES will operate, the strategy it is to follow, and advice on the selection of an administrator.
The consultant is also to advise KEDIPES on its relationship with Altamira Asset Management (Cyprus) Ltd.
Altamira was recruited by the demised Co-op to manage the recovery or settlement of non-performing loans, manage terminated loans, and in some cases manage outstanding debts for which settlement has been requested from the primary debtor.
The Co-op signed the agreement with Altamira at the end of December 2017, a few months before the bank’s takeover by Hellenic. KEDIPES is also to seek advice regarding the appointment of its Board of Directors.
The entity wants to bring on board an audit advisory firm which will monitor its compliance to the List of Obligations KEDIPES has towards the European Commission. The consultant firm must also reassess the entity’s compliance so far with its obligations towards the EU.
The ex-Co-op had been imposed a series of obligation by the Directorate-General for Competition when it was bailed-out by the government back in 2014. One of those obligations was to sell-off subsidiary companies and sell any shares they had in other companies.
Consequently, the sale of these assets was part of the commitments undertaken jointly by the Co-op with the Republic of Cyprus, due to the above-mentioned support. While the process of some subsidiaries is still ongoing, the Co-op has got rid of most of its shares in other entities.
In December 2017, the Co-op had agreed with a series of companies to a management buy-out of their participation; SOPAZ (animal feed), New SEVEGEP (juice maker), shipping company Comarine and SPEAL. SPEAL has also bought the Co-op’s stake in Synergas, a company active in storing and distributing bottled liquid petroleum gas (LPG).