Mediterranean Bank announces €35.3 million Volksbank purchase

Mediterranean Bank has announced its purchase of 100% of the share capital of Volksbank Malta for €35,300,000.

Mediterranean Bank has also agreed to refinance existing debt of Volksbank Malta to Österreichischen Volksbanken as of the closing date.

Volksbank Malta has operated as a fully licensed Maltese bank since 2002 and has provided banking services to the Maltese retail and corporate sectors.

After taking into account the carve-out last year of its international business, Volksbank Malta has total assets of approximately €150 million and equity of approximately €56 million.

Pro forma after-tax profits of Volksbank Malta for the period ended 31 December 2012, after taking into account the carve-out of Volksbank Malta’s international business, were approximately €605,000.

Mediterranean Bank expects that the purchase of Volksbank Malta will consolidate and expedite its Maltese growth strategy through Volksbank Malta’s portfolio of Maltese clients, which is complementary to Mediterranean Bank’s existing customer base and aligned with its future growth strategies.

The purchase is expected to be completed in the coming weeks, subject to receipt of required approvals from relevant governmental and regulatory authorities.