BoC disposes of Marfin Diversified Strategy Fund
Bank of Cyprus is disposing of its investment in the Marfin Diversified Strategy Fun, so it can enhance its liquidity and capital position.
BoC announced on Thursday the disposal of its investment in Marfin Diversified Strategy Fund Plc (MDSF), comprising 1.142.052,6400 Founder Shares and 765.096,0464 US Dollar A Shares (95% of MDSF issued share capital) to Dorchester Capital Secondaries Offshore III, LP.
According to the announcement, the sale consideration is $92 mn (approx. €84 mn), with the sale enhancing the Bank’s liquidity and capital position.
“Due to the disposal, there is a positive impact of approximately 0,1 percentage points on the Group’s Common Equity Tier 1 capital ratio due to the reduction of risk weighted assets. The accounting gain is approximately €10 mn and represents the recycling of the related foreign currency reserves into the income statement”, says.
The sale falls under the Group’s strategy of focusing on core businesses and markets, and disposing of operations that are considered as non-core.
The Private Fund Group of Credit Suisse has acted as exclusive banking advisor to the Bank, and the London office of Sidley Austin LLP acted as legal advisor to the Bank, in each case in relation to the disposal of the above asset.