Dubai Financial buys into Greek banking group

Dubai: Dubai Financial, a subsidiary of the Dubai Investment Group the global investment arm of Dubai Holding has acquired a 31.5 per cent stake in Greece's Marfin Financial Group, one of the fastest growing banking groups in Europe.

Pending regulatory approval for the share purchase, the Dubai group has been provided with seats on Marfin's board. The CEO of Dubai Investment Group, Soud Ba'alawy, will serve as its chairman.

According to a shareholders' agreement between Dubai Financial and Andreas Vgenopoulos, vice-chairman of Marfin, Vgenopoulos will retain his 6.75 per cent stake in Marfin and will continue to oversee the company's business plan, management structure, incentives and employment policies.

With the agreement of 15 selling shareholders, Dubai Financial has paid 25 euros (Dh118.28) per share for its stake in Marfin.

Marfin is listed in the Athens Stock Exchange with a market capitalisation of approximately 1.4 billion euros, meaning a 31.5 per cent stake would be worth 441 million euros or $567 million. A regulatory filing by Marfin in March had said Dubai Investment Group was prepared to pay a little over $507 million for the stake.

"I am pleased that the acquisition of the 31.5 per cent stake in Marfin has been completed in a spirit of good faith and cooperation with the management of the group. We have major plans to extend the European and global reach of Marfin which enjoys excellent fundamentals," Ba'a-lawy said.

"As a shareholder of Marfin, Dubai Financial will add synergy and value to the Group and I am confident that our partnership with Andreas Vgenopoulos will help Marfin become a major force in the financial world. I am also pleased that this expansion will be centred in Greece, which has a favourable infrastructure for investments," he said.

Through a series of strategic acquisitions, Marfin has controlling stakes in a number of banks in Greece and internationally under an announced plan to proceed with a major consolidation.