22nd Nov 2006 08:56
IRF European Fin Investments Ltd 22 November 2006 IRF European Finance Investments Ltd. ('IRF' or the 'Company') IRF Disposes of its Minority Position in Piraeus BankFortress Group LLC acquires a ten per cent. interest in Proton Bank Disposal of Minority Position in Piraeus Bank 22 November 2006 IRF confirms that it has disposed of its entire holding of approximately 8.5million shares in Piraeus Bank in the open market and realised a net gain onthis investment of approximately €12.8 million or approximately US$16.4 million. IRF acquired its stake in Piraeus Bank earlier this year for a total cashconsideration of approximately €170 million. Part of this acquisition wasfunded by means of a credit facility arranged with a commercial bank in Greece.Following IRF's disposal of its interest in Piraeus Bank, and utilising thesesale proceeds, IRF has now repaid this credit facility in full. The remainingproceeds from the sale will be retained by the Company for future acquisitionsor investments. Given the substantial appreciation in value of the Company's interest in PireausBank over a short period, the directors of IRF determined it was in the bestinterests of the Company to dispose of its investment in Piraeus Bank at thistime, rather than continue to hold this investment. Acquisition of an interest in Proton Bank by Fortress Group LLC IRF also confirms that Fortress Investment Group LLC, the US private equity fund, recently acquired a 7.2 per cent. interest in Proton Bank (on a diluted basis) in the open market. In June 2006, IRF acquired a 28 per cent. interest in Proton Bank. FollowingProton Bank's merger with Omega last month and taking into account the sharesissued therewith, IRF now owns a 20.16 per cent. interest in Proton. IRFcontinues to maintain a controlling position within Proton Bank and has nowappointed six of the eleven board members on Proton Bank's board. About IRF IRF was formed to invest in the financial services industry throughout Europewith a primary focus on credit institutions and insurance companies in SouthEastern Europe. IRF's current strategy is the acquisition of financialinstitutions having valuations which do not reflect their potential and wheremarketing and operational efficiencies are possible. IRF owns a 20.16 per cent.interest in Proton Bank S.A.. About Proton Bank Proton Bank is a full service financial services institution, including retailand investment banking as well the provision of specialised corporate advisoryand investment services. Proton Bank is listed on the Athens Stock Exchange. About Piraeus Piraeus Bank, a commercial banking group listed on the Athens Exchange, hasbanking interests in the retail, commercial and investment banking sectors. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
IRF.L