Wednesday November 20, 2024

Transaction finalises sale of Laiki’s main asset

Our Cyprus-based team has completed the sale of 21.5 million Bank of Cyprus shares held by collapsed Cypriot bank Laiki, in a deal that marks a significant milestone in one of the country’s largest liquidations and maximises return for Laiki’s creditors.

Laiki, the trading name of Cyprus Popular Bank, was Cyprus’ second-largest bank when it was placed under resolution in 2013. Its assets were transferred to Bank of Cyprus, giving Laiki shares in Bank of Cyprus.

In 2022, after a competitive closed tender, the Central Bank of Cyprus appointed our Cyprus-based Restructuring Advisory Partner Augoustinos Papathomas as Laiki’s liquidator.

Our sale of the 21.5 million-share equity bloc, representing the whole portfolio held by the liquidator and 50% of Laiki’s original stake in Bank of Cyprus, was carefully timed to align with Bank of Cyprus’ listing on the Athens Stock Exchange and the release of Bank of Cyprus’ 2024 Q3 results.

This helped our team achieve a price of €4.23 a share – exceeding the price of €3.05 per share achieved by the special administrator in 2017 for the first half of Laiki’s stock, and higher than the price achieved by another shareholder in Bank of Cyprus – CarVal – which sold 3% of its stake in October 2024 for €4.20 per share.

Our Cyprus team – based in Limassol – has managed some of Cyprus’ most high-profile insolvency cases, having also led the liquidation of the national air carrier, Cyprus Airways.

Augoustinos Papathomas, Restructuring Advisory Partner at FRP, said: “As liquidators, we have a duty to maximise the realisation for Laiki’s creditors, and this deal is a great outcome for the liquidation. We have successfully disposed of the bank’s entire portfolio, at strong price and a very low discounting rate – a particular achievement given the size of the stake being offered.

“This reflects our diligent, careful and strategic approach, combined with the knowledge and experience of our team and our partners. We’re now focused on completing the remaining stages of the liquidation as quickly as possible.”