BrazilFRP Advisory completes €91 million sale of Laiki Bank share portfolio
The liquidator of the former Laiki Bank, FRP Advisory, has achieved a key milestone in the bank’s long-time restructuring process, with the completion of the sale bringing in around €91 million.
Laiki Bank, 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 Augoustinos Papathomas, a Cuprus-based restructuring partner at FRP Advisory, as the liquidator of Laiki Bank.
Announced this week, the sale of the 21.5 million-share equity bloc, representing the whole portfolio held by Laiki Bank’s liquidator and 50% of Laiki’s original stake in Bank of Cyprus, performed better than expected. The sale was closed at 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 Bank’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.
Commenting on the milestone, Papathomas said: “As liquidators, we have a duty to maximise the realisation for the creditors of Laiki Bank, 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.”
The influx of funds will pave the way for the first payouts to creditors, expected within the next two to three months. The funds will primarily benefit depositors whose savings were haircut during the bank’s 2013 collapse.
Notably, the timing of the share sale was carefully timed to coincide with the relisting of Bank of Cyprus on the Athens Stock Exchange, a move that bolstered its stock value.
The road ahead
Going forward, FRP Advisory still has the task to complete the liquidation of some remaining assets. We’re now focused on completing the remaining stages of the liquidation as quickly as possible,” said Papathomas.
FRP Advisory is a UK-headquartered consulting firm specialised in restructuring, mergers & acquisitions (including financial distress deals), and debt advisory services. The firm’s team in Cyprus, which operates out of Limassol, has managed some of the country’s most high-profile insolvency cases, having also led the liquidation of the national air carrier, Cyprus Airways.
