In line with its growth strategy, AstroBank Limited announced on Monday the signing of an agreement with USB Bank PLC to acquire the banking business including the staff of USB, excluding only certain assets.
The agreement is expected to be completed before the end of the year following the necessary approvals from the regulatory authorities and completion of other formalities. The transaction will be financed from own resources and supported by a capital raise, primarily from AstroBank’s existing shareholders, currently at its final stages of completion.
With this acquisition, AstroBank said it will significantly strengthen its position in the Cyprus market by leveraging the synergies it creates. More specifically, AstroBank, as a result will grow by more than 55% reaching Total Assets of more than €2 billion, with Gross Loans at €1.2 billion, Customer Deposits at €1.9 billion and Equity at €160 billion.
AstroBank looks forward to working closely with the management and staff of USB for a smooth transition and a combined effort, going forward, to develop the business for the benefit of the customers, the employees and the shareholders, it added.