Marfin Popular Bank Public Co Ltd (“MPB”) announces that it has entered into an agreement with Bank of Beirut s.a.l. concerning the sale by MPB to Bank of Beirut of a majority stake in Laiki Bank (Australia) Ltd.
The main points of the agreement provide for the following:
A. MPB to sell 85% of Laiki Bank (Australia) Ltd to Bank of Beirut for a total cash consideration of AUS$142.9m (€104.3m)
B. MPB will remain as a minority shareholder in Laiki Bank (Australia) Ltd until at least February 2013. From February 2013 onwards, MPB has an option to sell its remaining stake in Laiki Bank (Australia) Ltd to Bank of Beirut.
The total consideration for the transaction represents a multiple of approximately 1.67 times the Net Book Value of Laiki Bank (Australia) Ltd at 30 September 2010.
The transaction is expected to result in a profit from disposal of approximately €52.7m to be recognised in 2011.
MPB has also agreed a strategic cooperation with Bank of Beirut, regarding the operations of the two banks in Australia, Cyprus and Lebanon.
Laiki Bank has been operating in Australia since 2001.
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