The Cooperative Central Bank (CCB) announced on Monday it has received two bids as part of its privatisation process launched in March. Sources told CNA, that Hellenic Bank, a Cypriot commercial bank and US asset Manager, Apollo Global Management, submitted binding offers, as the deadline for the submission of bids ended today.
“The Cyprus Cooperative Bank is pleased to confirm that it has received today two proposals from interested parties relating to a Strategic Transaction as per the Invitation for Expressions of Interest,” a press release issued by the CCB writes. According to the press release, the proposals are now under review by the Bank’s senior management working closely with Citigroup Global Markets Limited as exclusive financial advisor to CCB.
“We anticipate that the Board of Directors will meet as part of that review to consider the proposals and will provide further information at the appropriate time,” the CCB adds.
Saddled with non-performing exposures (NPEs) amounting to €6.2 billion roughly 60% of its total loans and facing mounting capital needs due to new assumptions concerning the valuation of collateral connected with the its NPEs, the CCB on March 19 launched a bidding process offering prospective investors with two options. Either to acquire the whole banking entity through a capital raise or to acquire performing part of the bank, that is, performing loans, deposits and part of its banking network.