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Elma – Marfin reach an agreement

29/05/2007 12:17
Elma Holdings and Marfin Popular Bank agreed to solve their differences, withdrawing all legal actions and achieving a close cooperation.

The dispute between Elma and Marfin is related to Kyknos case. In 2001, the shares of Kyknos were the ‘apple of discord’ between Sharelink and Era Group for the control of the investment company. SFS had submitted a Public Offer for the acquisition of Kyknos and Popular Bank together with Elma decided to submit a competitive Public Offer. “Popular Bank refused that it agreed with the company for Kyknos and the company, therefore, filed a legal action claiming 50% of the agreement, that is, £10 million. Similarly, the bank filed a legal action against the company claiming loans of £10 million”, Elma Chairman, Michalakis Ioannides told StockWatch.

“With the new Management of Andreas Vgenopoulos, we managed to reach an agreement, solving our differences. Elma Holdings will proceed to the creation of a portfolio in Greece, the manager of which will be Marfin Popular”, he added.

The agreement sets the requirements for the prospect of the Bank’s participation (up to 10%) in the share capital of the Company and the provision of Investment Services by the Bank, in accordance with the Company’s needs.

According to Elma, the agreement will not burden the Company’s accounts. On the contrary, this cooperation is expected to contribute to the Company’s progress and economic strengthening.