22 Sep 2006 09:57
IRF European Fin Investments Ltd 22 September 2006 Not for release, publication or distribution in, or into, the United States,Canada, Australia, Japan, the Republic of Ireland or South Africa 22 September 2006 IRF European Finance Investments Ltd. ("IRF" or the "Company") IRF Acquires a Minority Position in Piraeus Bank IRF is pleased to announce that it yesterday completed the acquisition ofapproximately 7.30 million shares in the open market in Piraeus Bank, acommercial banking group listed on the Athens Exchange, for approximately €146.9million in cash. This acquisition was funded partly through utilisation of IRF'scash balances and partly through a credit facility arranged with a commercialbank. The shares acquired represent 2.8% of Piraeus Bank's outstanding shares asof June 30, 2006, and include a 2% position purchased by IRF in a blocktransaction on September 21, 2006. IRF's current intention is to retain thisminority stake as an investment. Piraeus Bank has diversified banking interests in the retail, commercial andinvestment banking sectors. Piraeus Bank has a growing international presence,focused in Southeastern Europe, the Eastern Mediterranean as well as New Yorkand London. Piraeus Bank has a market capitalization of approximately €5.3billion and net revenue and net income (after minority interest) of €632.1million and €260.6 million, respectively, for the six months ended June 30,2006. In the financial year ended December 31, 2005, following strong profitgrowth, the total dividend proposed for distribution was increased to €107.4million (50 eurocents per share) an increase of 25 per cent. on the previousyear. For more information concerning Piraeus Bank, please seewww.piraeusbank.gr. "This acquisition is consistent with IRF's objectives of taking advantage of theconsolidation trend within the Greek banking market," said Angeliki Frangou,Chairman of IRF. Ms. Frangou added "we continue to execute our plan ofenhancing shareholder value. Piraeus Bank is a dividend paying stock, and weexpect to earn income on our investment while retaining the potential forcapital appreciation." This information is provided by RNS The company news service from the London Stock Exchange