Piraeus sells its Egyptian subsidiary

By Yiannis Papadoyiannis

Piraeus Group announced on Thursday the sale of 98.5 percent of its Egyptian subsidiary, Piraeus Bank Egypt, to Al Ahli Bank of Kuwait (ABK) for $150 million.

The statement noted that the price agreed amounts to 1.5 times the Egyptian lender?s equities.

In the context of the deal, ABK will also acquire in their nominal value loans of the Piraeus Group that add up to 23 million euros and are related to the group?s activities in Egypt.

The subsidiary?s sale will improve the fiscal position of the Greek group as it bolsters its liquidity by 200 million euros.

?The transaction reflects a rational valuation of our subsidiary, strengthening the capital index of the Group while releasing liquidity,? chief executive Anthimos Thomopoulos said on Thursday. ?It is also fully aligned with the restructuring plan of [Piraeus] Bank.?