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Bank of Cyprus to divest UK subsidiary for £103m

BBR Staff Writer Published 11 July 2018

Cynergy Capital has agreed to acquire Bank of Cyprus’ (BOC) wholly-owned subsidiary Bank of Cyprus UK (BOC UK) and its subsidiary Bank of Cyprus Financial Services (BOC FS) for £103m.

Subject to regulatory approvals, the deal is expected to complete by the end of this year.

Once the deal concludes, the BOC UK will be rebranded to Cynergy Bank, a name selected to reflect the bank's Cypriot heritage.

BOC is divesting the UK business to deliver better value for shareholders and focus on the growth of Cypriot economy.

Cynergy Capital and BOC will also sign a cooperation agreement to coordinate in multiple key areas, including continuity of servicing for existing customers

Bank of Cyprus Group CEO John Patrick Hourican said: "This is another positive step in our journey back to strength. The transaction will further simplify the Group and deliver good value to shareholders.

“The equity realised will be deployed in pursuit of our core activity in Cyprus to continue to support the recovery of the Cypriot economy.

The BOC UK is operating as retail funded franchise through seven locations across the country.

With offerings in property and business lending, the bank is specialized in supporting the business owners market.

The bank also offers mortgage products, and savings, current accounts and trade-related products for SMEs and professionals.

The bank is authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

The Bank of Cyprus Group provides a range of financial products and services, including retail and commercial banking, finance, factoring, investment banking, brokerage, fund management, private banking, life and general insurance.

Cynergy director Bal Sohal said: “Cynergy's focus will be on delivering sustainable growth for the UK bank.  We plan to support the existing management team to deliver on the strategy it has for the bank and are committed to investing further capital to develop the business in the coming years."