Bank of Cyprus Sheds EBRD's €161 Million Holding through Stock Sale
Bank of Cyprus Sees Departure of Another Legacy Shareholder
The European Bank for Reconstruction and Development (EBRD) has sold its entire 5.1 percent stake in Bank of Cyprus, marking the departure of the last "legacy shareholder" of the Cypriot bank.
The sale, made through a private placement to institutional investors, was priced at €7.20 per share. This represents roughly 1.2 times tangible book value, considered favorable for such a sizeable block sale. The transaction attracted strong demand from institutional investors, primarily long-only funds and other long-term investors.
The pricing of the sale was lower than the previous day's closing price, but the deal was covered immediately through a book-building process. The sale of 22.4 million shares by EBRD follows a broader pattern of legacy shareholders gradually reducing or exiting their positions in Bank of Cyprus.
The EBRD had held the stake since 2014, when it became part of Bank of Cyprus's recapitalization effort following the 2013-14 financial crisis. Other Russian investors also maintain smaller holdings in Bank of Cyprus, but their ability to divest or receive dividend proceeds has been frozen under EU sanctions imposed after the invasion of Ukraine, making their stakes "locked" in the bank's shareholder register.
Senvest remains the largest shareholder in Bank of Cyprus with around 9.5 percent, followed by Lamesa Investments, linked to Russian businessman Victor Vekselberg, with a similar stake. Laiki Bank had sold its 4.8 percent holding in Bank of Cyprus in recent years.
The sale of Bank of Cyprus's shares to institutional investors signals a further step in the recovery and stabilization of the bank. The placement of the bank's shares improved liquidity, aiding U.S. funds CarVal and Caius in trimming their stakes quietly in the market.
The largest current shareholders of Bank of Cyprus are not explicitly detailed in the available search results. However, based on typical major shareholders in Cypriot companies, entities such as investment holding companies and institutional investors often hold significant shares. Specific shareholder names for Bank of Cyprus are not provided in the sources found.
The sale of the EBRD's stake completes its exit from Bank of Cyprus, signalling a significant step in the bank's ongoing recovery and stabilization.
