Coop receives two binding offers from investors Update 2

first_imgCyprus’s second largest lender, the state-owned Cooperative Central Bank (CCB), said on Monday that it had received proposals for the acquisition of its operations from two prospective buyers.Hellenic Bank, the third largest Cypriot bank, said that it was among the bidders.“The proposals are now under review by the bank’s senior management working closely with Citigroup Global Markets Limited as exclusive financial advisor to CCB,” the Co-op said on Monday, after the deadline for submission of binding offers expired. “We anticipate that the board of directors will meet as part of that review to consider the proposals and will provide further information at the appropriate time.”The Cyprus News Agency reported that the US-based Apollo Capital Management was the other bidder.In a laconic statement on the website of the Cyprus Stock Exchange, Hellenic said that it was participating in the tender initiated by the Co-op on March 19, and that it submitted an offer.“The company will, to the extent required by applicable laws and regulations, keep the investors informed of any developments on this matter,” Hellenic Bank added.In April, the government – which bailed out the CCB with two capital injections of €1.5bn and €175m in 2014 and 2015 and owns more than 99 per cent of its stock – issued bonds worth €2.4bn to the Co-op and deposited €2.5bn in government funds at the lender in an attempt to soothe depositor concerns over the bank’s solvency. These concerns had triggered significant cash withdrawals in previous months.In 2013 when the twin banking a fiscal crisis culminated into the loss of €8bn in deposits, depositors at Bank of Cyprus saw half of their uninsured funds converted to equity while those at the Cyprus Popular Bank lost all their deposits in excess of €100,000.The Co-op, the product of successive mergers of mostly poorly managed local cooperative saving banks, has made very slow progress towards reducing its non-performing loans stock.In September, the bank’s delinquent loan portfolio stood at €6.7bn or almost 59 per cent of the total. While the bank has not published its financial results for the whole of 2017, it said in December that it had meanwhile reduced its bad loans stock to €6.5bn.Last year, the government shelved its plans to hand over up to 25 per cent of the Co-op’s stock to its customers and depositors after the Central Bank of Cyprus intervened. The bank also scrapped its initial plan to seek a listing on the Cyprus Stock Exchange.Economist and former banker Marios Clerides who served as the Co-op’s managing director until mid-2015, said that he was encouraged, but would reserve judgement over the bank’s two bids.“It’s better to have to interested buyers,” he said in a telephone interview. “If you have only one, it is easy to be taken advantage of in negotiations.”One the other hand, he added, they are both seeking to acquire distressed assets at a low cost.You May LikeCar Insurance | Search AdsThe Cost of Car Insurance in Rowland Heights Might Surprise YouCar Insurance | Search AdsUndoWatch DistroTVWatch Flour Power on DistroTV. Learn delicious baking recipes.Watch DistroTVUndoBeautyHold5 Things You Should Not Do If You Are a Smart PersonBeautyHoldUndo Two of serial killer’s victims buried in PhilippinesUndoBrazil prison riot kills 52, with 16 decapitatedUndoAt least 20 killed, 50 injured in attack on VP candidate’s office in KabulUndoby Taboolaby Taboolalast_img read more

EU looking towards East Med gas reserves

first_imgEastern Mediterranean gas reserves, including Cyprus’, could play a significant part in addressing the European Union’s drive for energy diversification, the European Commission reiterated on Monday.During a press briefing in Brussels, Jakub Adamowicz, European Commission Spokesperson for Transport and Regional Policy, was asked how the gas fields located between Israel and Cyprus fit into the wider EU Energy Union scheme.“The East Mediterranean gas findings could play a very important role helping both producing and neighbouring countries to address their energy security problems. They could also have a growing role in the EU diversification strategy,” Adamowicz said.He added however that it was too early to assess the impact of those gas finds on the EU gas market.“The Commission has acknowledged on many occasions the potential of the eastern Mediterranean region, in the context of the recent gas discoveries and follows with great interest the development plans for the Cyprus gas field and the other gas sources in the area of the eastern Mediterranean,” said Adamowicz.“Of course the ending of energy islands and diversification of EU gas supplies is an important objective of this Juncker Commission as laid down in the Energy Union Strategy.“Bringing new gas to the EU, and in particular to the vulnerable region of southeastern Europe is also of key importance in this respect.”In 2015 the East Med Pipeline, designated as a Project of Common Interest, received €2 million in funding from the Connecting Europe Facility (CEF).The East Med Pipeline is a proposed gas pipeline to link Cyprus to Crete and then Greece or Italy.Some experts question the technical feasibility of the project, as well as its high price tag, which would impact the market price on the European consumer end, rendering it uncompetitive to imported Russian gas.The only confirmed gas field in Cyprus’ Exclusive Economic Zone, dubbed Aphrodite, holds an estimated 4.5 trillion cubic feet of gas.You May LikePopularEverythingColorado Mom Adopted Two Children, Months Later She Learned Who They Really ArePopularEverythingUndoLivestlyChip And Joanna’s $18M Mansion Is Perfect, But It’s The Backyard Everyone Is Talking AboutLivestlyUndoModernizeIf Your Home Has Old Roofing, Read ThisModernizeUndo Pensioner dies after crash on Paphos-Polis roadUndoCypriot tycoon launches ‘Bank of Cannabis’UndoThree arrested in connection with hotel theftsUndoby Taboolaby Taboolalast_img read more