By Stelios Orphanides
The state-owned Cyprus Cooperative Bank has sold part of its stake in investment firm Demetra Investment Plc Ltd, to software developer Logicomf for €20.4m, it was announced on Thursday.
Logicom has acquired 37m Demetra shares at a price of €0.55 per share, the company said in a statement on the website of the Cyprus Stock Exchange (CSE).
As a result, Logicom’s stake in Demetra rose to 29.6 per cent from 11.1 per cent while that of the Coop was reduced to 1.1 per cent.
Demetra’s stock closed at €0.50 on Thursday, after rising 6.8 per cent from the previous day and almost 12 per cent in a week, according to the CSE website.
A source familiar with the matter said the deal will have a 15 basis points positive impact on the capital of the Co-op, which received almost €1.7bn in taxpayers’ money in 2014 and 2015 in the form of two capital injections.
In the first nine months of 2017, Demetra, which owns 10.1 per cent in Hellenic Bank, generated a €6.6m after-tax profit compared to a €7.5m loss in the respective period of 2016