Bank of Cyprus Holdings Public Limited Company – together with its subsidiaries – has announced that it has signed a binding agreement to sell its wholly owned subsidiary bank in the UK to Cynergy Capital Limited.
The group has also agreed to sell its subsidiary Bank of Cyprus Financial Services Ltd to Cynergy Capital.
The sale is expected to be completed by the end of 2018 and is subject to approval by the regulators of both the group and Bank of Cyprus UK (BOC UK).
The sale consideration of £103m is subject to the customary purchase price adjustments for the period up to completion, with the consideration payable in cash, of which half is deferred over 24 months from completion.
Bank of Cyprus’s decision to sell its UK arm is in line with its strategy of delivering value for shareholders and focusing primarily on supporting the growing Cypriot economy.
The group and the UK arm will sign a cooperation agreement, which will see both organisations cooperating in a number of key areas going forward, including continuity of servicing for existing customers.
“While BOC UK has been part of the group for a long time, it has become increasingly clear that the UK business will benefit from the greater scale that can be achieved through the support of Cynergy,” said John Patrick Hourican, group CEO at Bank of Cyprus.
“We expect this change in ownership to drive greater value for customers, colleagues and group shareholders.
“The transaction will allow the bank in the UK to grow faster, thereby achieving the ambition for this business with new partners.”
Following the completion of the sale, BOC UK is expected to be rebranded to Cynergy Bank.
“The sale to Cynergy will enable us to focus on growing our franchise across enterprising business owners and savers in the UK, including the underserved property and SME market,” said Nick Fahy, CEO at BOC UK.
Bal Sohal, director at Cynergy, added: “We have been actively looking to invest in the UK banking sector, where we see significant opportunities for growth and to better address the needs of small businesses in the UK, including those of the Cypriot community.
“Cynergy’s focus will be on delivering sustainable growth for the UK bank.
“We plan to support the existing management team to deliver on the strategy it has for the bank and are committed to investing further capital to develop the business in the coming years.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Anna to launch business current account for creative UK SMEs
Hybrid digital assistant Anna has announced plans to launch a UK business current account aimed exclusively at supporting SMEs in the creative industries...
Masthaven reaches £500m in assets
Masthaven has announced that it has generated £500m in assets driven by the growth in its diversified lending across short-term and long-term property finance...
Aldermore refreshes proposition for residential and BTL mortgages
Aldermore has updated its proposition for residential and buy-to-let mortgages...
Paragon provides £20m facility to Duologi
Paragon has agreed a £20m facility with Duologi to support the latter’s plans to grow its portfolio to £1bn in five years...
OakNorth adds former PRA director to advisory board
OakNorth has appointed Martin Stewart as an independent adviser on its advisory board...
HM Treasury to discuss diversity at FP Show
Representatives from HM Treasury’s Women in Finance Charter team will take part in a panel discussion on the role of diversity targets at the Finance Professional Show...
Aldermore agrees over £200m of new invoice finance facilities
Aldermore has announced that it has delivered over £200m of new invoice finance facilities to UK SMEs in the last 12 months...
CYBG completes acquisition of Virgin Money
CYBG has completed its acquisition of Virgin Money...
Penta raises €7m in latest investment round
Business bank account Penta has announced that it has raised €7m for its Series A investment round...
STB Commercial Finance opens Leeds office
Secure Trust Bank (STB) Commercial Finance has opened a new office in Leeds as it continues its national expansion...
Starling expands payment services and banking-as-a-service offer
Starling Bank is expanding its banking-as-a-service and payment services offer to enable other companies to offer retail banking and make payments...