National Development and Social Fund agrees to acquire 49% of Lombard Bank

The National Development and Social Fund has agreed to buy 49% of the shares in Lombard Bank, which are currently held by the Cypriot Popular Bank Public Co. Ltd.

The National Development and Social Fund is a government agency established for the purpose of managing and administering seventy per cent of the contributions received from the Individual Investor Programme.

In a statement, it said the acquisition would be subject to the approval of the Malta Financial Services Authority in terms of the Banking Act.

“This acquisition is by no means a strategic investment but intended solely to facilitate the exit of the Cypriot major shareholder of Lombard Bank Malta p.l.c. one of Malta’s established and respected banks and also the major shareholder of MaltaPost p.l.c. Malta's leading postal services operator,” read the statement.

“It is a measure taken by the Board of Governors of the NDSF in terms of its founding regulations to support business and enterprise, in this case an important operator in the domestic banking sector.”

Furthermore, the NDSF said it did not intend to increase its holding in the bank, nor did it intend to “act in concert with any other shareholders”.

“On the contrary, the NDSF will seek to reduce its proposed shareholding in the Bank in an orderly manner, at the right market conditions and by agreement with the necessary authorities,” said the NDSF.

“In the meantime, the Board of Governors further confirms that the NDSF has no intention of exerting influence on the operations of the Bank.”

It emphasised that the acquisition would therefore not result in a change in control of the Bank.  

Earlier today, Global Finance confirmed that it would be keeping its offer to buy the bank in place. It also confirmed that York Capital was not involved in its bid.

It had previously stated that its offer was being supported by York Capital, which it described as a private equity fund with over €25 billion under management and by other institutional and private investors.