Last checked at 7 Oct 2019 12:05
Announcement
Completion of the sale of investment in CNP Cyprus Insurance Holdings Ltd
Nicosia, 7 October 2019
Further to the announcement of Bank of Cyprus Holdings Public Limited Company ("BOC Holdings" and, together with its subsidiaries, the "Group") on 4 June 2019, BOC Holdings announces the completion of the sale of its entire shareholding of 49.9% in its associate CNP Cyprus Insurance Holdings Ltd ("CNP CIH") that had been acquired as part of the acquisition of certain operations of Laiki Bank in 2013, to CNP Assurances S.A. (the "Buyer") who owns the remaining 50.1%, following the receipt of the necessary regulatory approval.
The sale enables the Group to focus on its core assets and is in line with the Group's strategy of delivering value for shareholders. The Group will continue to offer insurance services through its wholly owned insurance subsidiaries.
The sale consideration of €97.5 mn was received upon completion.
The sale has a positive impact of c.30 bps1 on both the Group's CET1 ratio and Total Capital ratio. Following the agreement for the sale in June 2019, the investment in CNP CIH was remeasured to the agreed price, resulting in an accounting loss of c.€26 mn, which was recorded in the consolidated income statement during the second quarter of the year.
As required by the Cyprus Stock Exchange and according to paragraph 5.2.1.17(7) of the Decision of the Council of the CSE Concerning the CSE Market 379/2014 (as amended), the transaction is at arm's length, it does not relate to or affect the interests of the Company's Secretary or of any "designated person" in accordance with the meaning given to the aforementioned term in article 137(3) of the Cyprus Securities and Stock Exchange Law 14(I)/1993 (as amended).
For further information, please contact Investor Relations at investors@bankofcyprus.com.
1 Based on the Group financial results for the six months ended 30 June 2019
Group Profile
The Bank of Cyprus Group is the leading banking and financial services group in Cyprus, providing a wide range of financial products and services which include retail and commercial banking, finance, factoring, investment banking, brokerage, fund management, private banking, life and general insurance. The Bank of Cyprus Group operates through a total of 108 branches in Cyprus. Bank of Cyprus also has representative offices in Russia, Ukraine and China. The Bank of Cyprus Group employs 4,155 staff worldwide. At 30 June 2019, the Group's Total Assets amounted to €21.9 bn and Total Equity was €2.5 bn. The Bank of Cyprus Group comprises Bank of Cyprus Holdings Public Limited Company, its subsidiary Bank of Cyprus Public Company Limited and its subsidiaries.