InsiderBusinessCabinet gives in principle go ahead to Hellenic-CCB deal

Cabinet gives in principle go ahead to Hellenic-CCB deal

The Council of Ministers on Friday gave its in principle approval of  a final bid made by Hellenic Bank to acquire the ‘good’ part of the Cyprus Co-operative Bank.

Speaking after an emergency meeting of Cabinet, Finance Minister Harris Georgiades said that final approval is subject to Hellenic submitting a capital plan regarding its bid.

The capital plan should be submitted before the CCB holds an EGM on Monday afternoon to consider Hellenic’s  revised offer. The CCB is effectively state owned.

Earlier, Hellenic Bank announced on the Cyprus Stock Exchange that it had submitted a final offer for the acquisition of certain assets and liabilities of the CCB which is subject, among other things, to a capital increase.

Under the proposed deal, Hellenic will take over the CCB’s liabilities (deposits) of €9.7 billion and assets of €10.3 billion , including loans, bonds and cash as well as NPLs of €500 million. Hellenic will absorb 1100  of the CCB’s 2650 staff and keep 72 of the 170 branches. Assets of the CCB of €8.3b will be signed over to the state.

The proposed deal is subject to the approval of the European Commission and Cypriot and EU regulators.

Georgiades said Friday’s decision was a difficult one, but that it addresses risks and safeguarded deposits and the positive prospects of the economy.

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