Greek lender Piraeus Bank has purchased Millennium Bank Greece (MBG), a subsidiary of Millennium BCP (BCP), following the receipt of all concerned regulatory approvals.
BCP has recapitalized MBG by infusing €274m, apart from €139m already pumped by BCP into MBG in December 2012.
Subsequently the total recapitalization touched €413m to date, which is in line with the requirements of Bank of Greece.
As per the terms of the transaction, the acquirer has paid a consideration of €1m for the acquisition of the recapitalized MBG.
In order to acquire Piraeus Bank ordinary shares, BCP will invest €400m in a private placement with the exclusion of pre-emptive rights within the HFSF recapitalization framework.
Piraeus Bank Group board of directors chairman Michalis Sallas said the acquisition boosts its capital position and earning generation capability, while the BCP investment into Piraeus Bank provides over the minimum 10% threshold private sector participation in the upcoming recapitalization.
(source: retailbanking)
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