CarVal Investors has further reduced its stake in the Bank of Cyprus, marking another significant divestment by the American investment fund.

According to an announcement by the bank, CarVal has decreased its shareholding from 3.07 per cent to 2.99 per cent following its latest sale of shares.

This comes just a day after the previous transaction was disclosed, indicating a continued reduction in the fund’s involvement with the Cypriot financial institution.

Prior to this recent wave of sales, CarVal held a 4.99 per cent stake in the Bank of Cyprus.

However, successive transactions over the past week have seen this shareholding decline significantly.

As of March 20, 2025, CarVal now holds 13,184,655 shares out of a total of 440,224,067 shares in the bank. The transaction was officially reported on March 21.

According to a report from Stockwatch, CarVal’s recent divestments are part of a broader trend among major investment funds adjusting their positions in the Bank of Cyprus.

The firm first entered the bank’s shareholder base in January 2021, eventually expanding its stake to 9.07 per cent by 2023.

However, in October 2024, CarVal reduced its holding by 3 per cent and has been consistently selling shares into early 2025.

Between January and early March 2025 alone, CarVal offloaded approximately 4,996,000 shares, lowering its stake from 6.12 per cent at the end of 2024 to 4.99 per cent by March 5, 2025.

CarVal is not the only investment firm reducing its exposure to the Bank of Cyprus. Caius Capital LLP, which became a significant shareholder in 2019 with a 9.58 per cent stake, has also been gradually divesting since 2021.

By January 2025, Caius Capital’s stake had fallen to 4.98 per cent following multiple sales over recent years.

These sell-offs coincide with the Bank of Cyprus’s €30 million share buyback programme, launched on February 24, 2025.

The programme, which has received approval from the European Central Bank, aims to repurchase and cancel shares, thereby reducing the company’s share capital.

The buyback is scheduled to run until February 5, 2026.

Despite these large-scale divestments, the Bank of Cyprus’s stock price has remained stable, suggesting that the market has absorbed the sell-offs without significant volatility.

This indicates that the bank’s strategic approach to capital management and investor relations has mitigated any adverse effects from these shareholder changes.

*This article is a translated version of content originally published on StockWatch.