…European Investment Bank also wants to sell
Following the recent Council of Ministers decision for the disposal of the government’s 88,01% stake in the Cyprus Development Bank, the process for inviting expressions of interest has been initiated. CDB’s other shareholder, the European Investment Bank, also decided to dispose of its own shareholding, which stands at 11,99%.
HSBC Bank plc will act as CDB’s exclusive financial adviser in the transaction. The process will be open, transparent and non-discriminatory and will be in line with state aid legislation. An invitation for expression of interest will be published in the press. Interested parties should submit to HSBC all information necessary for assessing their qualification and suitability for taking part in the process, as stipulated in the said invitation.
According to CDB’s CEO, Takis Taoushanis, “for CDB to attain its future prosperity and growth in an open and highly competitive banking environment, the search for a new owner becomes imperative. With a new ownership structure, which will provide the appropriate know-how and funding, the Bank will be in a position to expand and move to new areas of banking. This will ensure its long-term success and enhance its contribution to the further development of the Cyprus economy”.
The present conditions in the Cyprus Banking sector are considered conducive for the contemplated change in ownership of the institution. The recovery of the stockmarket, in conjunction with the forces that have been shaping the domestic banking industry as of late, have created a favourable environment which is expected to facilitate keen interest in CDB by investors. The disposal process will, no doubt, be facilitated to no small extent, by the marked improvement in CDB’s financial results, with profits reported over the last two years.