04/11/2004 07:27
The Bank of Cyprus announced on Wednesday the signing of a Memorandum of Understanding with a group of foreign and possibly Cypriot buyers for the sale of its subsidiaries Kermia and Kermia Properties & Investments (KPI). The announcement of the agreement, which was not revealed for more than six months, does not clarify whether the sale concerns the assets or the shares of the two subsidiaries but makes clear that the acquisition does not include Kermia’s subsidiary, Kermia Hotels.
Deal of “hundreds of pounds”
The initial cost of the assets included in the balance sheets of the two subsidiaries in 2003 exceeds £4 million. According to sources, most properties were bought before mid 1990s. StockWatch preliminary data reveal that the market value of the properties exceeds £20 million. However, the sale price is not expected to include the capital gains tax, while a volume discount is likely to result.
The properties of KPI are situated in Limassol, Souni, Mazotos, Psematismenos and Ayios Tychonas. Kermia’s properties are situated mostly in Limassol. According to sources, the market value of the plot held by KPI at the area of Tsiflikouthkia in Limassol exceeds £4.5 million. A bank source confirms that the deal amounts to “hundreds of pounds”.
From the sale of properties, Kermia generated net profits of £1.4 million in 2003 and KPI had net profits of £139 thousand.
Foreign buyers
It seems that the intended buyers are foreigners, although the possibility for Cypriot investors is still not excluded. Certain sources reveal that it is all about an Israeli company with operations in Europe and the wider area.
A bank source refused to comment on the latest developments.
BOC: Capital release
The intention of the Bank of Cyprus to sell two subsidiaries falls within the framework of its efforts to concentrate in its main activities. “We are not property dealers. With this sale, the bank will release significant capital, which will be used for financing activities either in Cyprus or overseas”, BOC Financial Director, Yiannis Kypri told StockWatch.
It is noted that the operations of the Bank of Cyprus (London) merged with the operations of the Group’s branches recently.
Mr. Kypri clarified that the dividend policy that the Board of Directors will follow in late 2004 will not depend on the profits that the Group will generate from the sale of Kermia and KPI, but on the operational profitability.
Positive response
Commenting on the latest developments in the Bank of Cyprus Group, analyst Alecos Sergides (SAFS) said that it is a positive move and a good timing.
“The Bank of Cyprus makes clear that it wants to be relieved from the operations that it has not a competitive advantage or anticipated profits due to the labour cost. The capital release will increase its financing abilities”, he said.
Deal of “hundreds of pounds”
The initial cost of the assets included in the balance sheets of the two subsidiaries in 2003 exceeds £4 million. According to sources, most properties were bought before mid 1990s. StockWatch preliminary data reveal that the market value of the properties exceeds £20 million. However, the sale price is not expected to include the capital gains tax, while a volume discount is likely to result.
The properties of KPI are situated in Limassol, Souni, Mazotos, Psematismenos and Ayios Tychonas. Kermia’s properties are situated mostly in Limassol. According to sources, the market value of the plot held by KPI at the area of Tsiflikouthkia in Limassol exceeds £4.5 million. A bank source confirms that the deal amounts to “hundreds of pounds”.
From the sale of properties, Kermia generated net profits of £1.4 million in 2003 and KPI had net profits of £139 thousand.
Foreign buyers
It seems that the intended buyers are foreigners, although the possibility for Cypriot investors is still not excluded. Certain sources reveal that it is all about an Israeli company with operations in Europe and the wider area.
A bank source refused to comment on the latest developments.
BOC: Capital release
The intention of the Bank of Cyprus to sell two subsidiaries falls within the framework of its efforts to concentrate in its main activities. “We are not property dealers. With this sale, the bank will release significant capital, which will be used for financing activities either in Cyprus or overseas”, BOC Financial Director, Yiannis Kypri told StockWatch.
It is noted that the operations of the Bank of Cyprus (London) merged with the operations of the Group’s branches recently.
Mr. Kypri clarified that the dividend policy that the Board of Directors will follow in late 2004 will not depend on the profits that the Group will generate from the sale of Kermia and KPI, but on the operational profitability.
Positive response
Commenting on the latest developments in the Bank of Cyprus Group, analyst Alecos Sergides (SAFS) said that it is a positive move and a good timing.
“The Bank of Cyprus makes clear that it wants to be relieved from the operations that it has not a competitive advantage or anticipated profits due to the labour cost. The capital release will increase its financing abilities”, he said.
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