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CCB: Salami tactics are off the table

March 31, 2018 at 7:55pm
By March 31, 2018 No Comments

All investment options for the privatization of the Cyprus Co-operative Bank are on the table, both when it comes to capital increase and acquisition of banking operations.

Fewer than 10 investors have been assessed by Citi to have all guarantees and the financial standing to complete any transaction and proceed to the next stage.

Initially, the number of possible investors was a significant two-digit number.  However, CCB’s adviser and Citigroup Global Markets combed through all possible investors and deemed some of them unsuitable, thus reducing the number to one-digit.  The criteria that had to be met by the possible investors were the financial resources to carry out the transactions and the quality, meaning that the investor should have the guarantees to undergo the fit and proper assessment of the European Central Bank. The next step is the submission of binding proposals expected to be completed in May.

Within some time, we will find out how many of the investors will proceed with the process and gain access to additional details relating to the Cyprus Co-operative Bank. Interest has been expressed even for the purchase of non-performing loans.  As reported by a CCB’s official, the purchase of the NPL portfolio will be accompanied by the staff employed in Altamira and real estate collateral securing loans.

The CCB announced that both international and local entities, representing strategic and financial investors, expressed their interest in the bank. A CCB official described the interest “very important both in quality and quantity”. Possible investors expressed their interest in acquiring the bank as a licensed entity (first option) or acquiring its assets, liabilities and bank network, through the smooth transfer of assets (second option).

Indeed, with regard to the first option, it seems that more than one investor expressed their interest.