Bank of Cyprus announces the transfer of the interest held in the Society of Grand Hotel Companies which owns JW Marriott hotel in Bucharest to Austrian group Strabag in a transaction estimated at 95 million euro. The sale is expected to be carried out by the end of September, 2014, yet, in case of a delay, its completion shall be no later than late-October, 2014.
The stake equivalent to 35 percent of the shares will give Strabag, currently the major shareholder, full control on the company. In addition to the securities, the sale arrangement includes a loan provided by the Romanian branch of the bank to the company and a subordinated loan agreement between an affiliate of the bank and the company, states a press release from Bank of Cyprus.
“The sale of these assets is part of the group’s strategy to focus on key business and markets, dropping out non-core operations”, according to the mentioned press release. In light of the new business direction, Bank of Cyprus is also looking to reduce its presence in the domestic market so as to eventually exit Romania.
Last year in March, Marfin Bank Romania took over gross assets worth 82 million euro from the Romanian branch of Bank of Cyprus together with deposits of 77 million euro. Bank of Cyprus entered the domestic market in 2007, being part of the largest banking group in Cyprus with operations in Australia, Greece, Russia, the UK, Ukraine and the Channel Islands.