Bank of Cyprus(BoC) has completed the sale of its assets related to Societatea Companiilor Hoteliere Grand S.R.L. (“GHES”), a limited liability company incorporated in Romania and owner of the JW Marriott Bucharest Grand Hotel to STRABAG SE, an Austrian stock company.
According to an announcement issued here today by the Bank, the sale consideration is €95 mn, with the proceeds of the sale enhancing the Bank’s liquidity position. The accounting loss from the transaction is around €1 mn, but there is a positive impact of approximately €7 mn on the Group’s capital position, after taking into account the reduction in risk weighted assets.
The sale falls under the Group’s strategy of focusing on core businesses and markets and disposing operations that are considered as non-core and is being implemented as anticipated by the Restructuring Plan, the announcement adds.
It is also in line with the Group’s decision to gradually reduce its presence in Romania and to finally exit the Romanian market. Finally, the sale achieves an exit from a sizeable and specialised asset in Romania.
As required by the Cyprus Stock Exchange and according to paragraph 5.2.1.17(7) of Law 326/2009 (as amended), the transaction is at arm’s length, it does not relate to or affects the interests of the Company’s Secretary or of any “designated person” in accordance with the meaning given to the aforementioned term in article 137(3) of the Law.
