Mediterranean Bank plc - Acquisition of Volksbank

Tuesday, April 15th, 2014

On 11 April, Mediterranean Bank plc announced that it acquired the entire share capital of Volksbank Malta Limited for a cash consideration of €35.3 million. Mediterranean Bank also agreed to refinance existing debt of Volksbank Malta to Volksbank Austria.

The announcement noted that Volksbank Malta has total assets of approximately €150 million and equity of €56 million. Furthermore, the pro-forma after tax profits of Volksbank Malta for 2012 were approximately €605,000. Mediterranean Bank expects that the purchase of Volksbank Malta will consolidate and expedite its Malta growth strategy through Volksbank Malta’s portfolio of Maltese clients which is complimentary to Mediterranean Bank’s existing customer base and aligned with its future growth strategies.

The purchase is expected to be completed in the coming weeks, subject to regulatory approval from the relevant authorities.

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