Bank of Cyprus announced on Friday it had completed the sale of its wholly owned subsidiary bank in the UK, Bank of Cyprus UK Limited and its subsidiary Bank of Cyprus Financial Services Limited, to Cynergy Capital Limited following the receipt of the necessary regulatory approvals from the Prudential Regulation Authority and the European Central Bank.
The decision to sell the UK Group was in line with the Group’s strategy of delivering value for shareholders and focusing principally on supporting the growing Cypriot economy, the bank said.
The sale consideration amounted to £107 m (€120m) comprising £103m base consideration plus a purchase price adjustment of £4m.
Half of the base consideration together with the purchase price adjustment was received upon completion and the remaining half is deferred over 24 months, without any performance conditions attached, the bank said
In addition, the Group and BoC UK have signed a cooperation agreement, under which both organisations will cooperate in a number of key areas going forward, including continuity of servicing for existing customers.