€ 26.5 mln raised from sale of Co-op com­pa­nies up to 2017

Financial Mirror (Cyprus) - - CYPRUS -

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).

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