Finance

In another financial coup Andreas Vgenopoulos yesterday announced two mega deals expected to generate an additional 45m euros in profits for Marfin Popular Bank.

The high-profile Greek CEO of MPB first clinched a deal to sell its 7.17% stake in Hellenic Bank to the church of Cyprus for 62.17m euros.

Later the same day, MPB sold its 35% stake in local insurance giant Universal Life to MFS Holdings, a subsidiary of the Greek Aspis group for 24.1m euros.

Confirming both deals late in the afternoon, MPB said the sale of the two non-strategic minority stakes would generate at least 45m euros in profits.

Also yesterday MPB said the board approved its 2007-2009 business plan projecting net profits of 360m euros in 2007, 470m euros in 2008, and 600m euros in 2009.

The agreement with the church, brokered by Vgenopoulos and Archbishop Chrysostomos, brings the church’s stake in the island’s third-largest bank to 24.1%.

The archbishop – who argues that local banks should stay in Cypriot hands as long as the island remains divided, said the church hoped to raise its stake further to 25%.

MPB said the deal should be completed within three months subject to the Archbishopric receiving all the necessary permits from regulatory authorities.

The deal was announced yesterday after a one and half hour meeting between the archbishop and Vgenopoulos, the Greek banker, who brokered the recent merger of Laiki, Marfin and Egnatia.

Vgenopoulos has caused a stir with his proposal to buy out Bank of Cyprus and Piraeus to create a regional banking giant.

He told reporters last month MPB would give the church the first option to buy MPS’s share in Hellenic as it saw no reason to retain the investment.

Archbishop Chrysostomos has repeatedly said the church would raise its stake in the Bank of Cyprus and Hellenic to protect them from foreign acquisitions.

Archbishop Chrysostomos thanked MPB for its willingness to sell the shares. And he said once the island is reunited that there would be no problem with as many foreign banks as so desire coming to Cyprus.

Vgenopoulos said MPB wanted to help the church increase its stake in Hellenic so that it can serve as a shield to hostile takeovers.

And he indicated that Hellenic should look to coming to an agreement with a big bank so as to strengthen its position in the local and European markets.

Also yesterday MPB sold its 35% stake in Universal Life to the Greek Aspis group for some 24.1m euros – equivalent to £3 a share. The deal was made through MFS Holdings and is subject to approval by regulatory authorities.

Aspis Pronia has been locked in a tug of war for control of the local insurance giant for several months.

Universal Life is the majority shareholder of Universal Bank, itself subject to rival takeover bids – one of them from Aspis and Commercial Value.

The island’s two largest banks used to own some 63% in Universal Life. An initial agreement to sell them to Aspis fell through. Bank of Cyprus eventually sold its 28% stake to shareholders Photos Photiades and Andreas Georghiou – the insurance firm’s CEO for £2.10 a share.