CDB Bank in talks with both local and international parties for potential acquisition

The Cyprus Development Bank (CDB Bank) has been reported to be in discussions with an Armenian banking institution regarding a potential acquisition, following the breakdown of talks with AstroBank, according to a report released on Friday by the Cyprus News Agency (CNA).

AstroBank officially announced the termination of discussions with CDB Bank on Tuesday, signalling the end of a process that had commenced at the end of the summer.

Although the Executive Director of CDB Bank, Loucas Marangos, acknowledged that negotiations with AstroBank had reached a positive and constructive stage, he did not delve into the specific reasons for the breakdown.

In response to inquiries from CNA, Marangos stated that “at the end of the day, there was agreement on some issues, and we had reached a very good point,” without providing further details on the reasons for the collapse of the talks.

However, CNA cited sources which suggested that CDB Bank is currently in discussions with an Armenian banking institution regarding a potential acquisition.

When asked by CNA, Marangos neither confirmed nor denied the information, stating that the bank has received interest in recent years from both Cyprus and abroad.

“I cannot make any comments. What I can say is that in recent years there has been interest both domestically and internationally in the bank,” he said.

If the matter progresses, it will require approval from the Central Bank of Cyprus (CBC), and in the case of acquiring a significant shareholding (qualified holding), it will also need approval from the European Central Bank (ECB).

It should be noted that based on the 2022 financial results, CDB Bank had total assets amounting to €0.55 billion.

The bank’s gross loans totalled €250 million, and deposits amounted to €487 million, with deposits at the Central Bank totalling €220 million.