IIP fund formalises acquisition of 49% stake in Lombard Bank

The National Development and Social Fund (NDSF) has entered into a share purchase agreement to acquire a 49.01% stake in Lombard Bank.

In a statement on Friday afternoon, the NDSF said it would be acquiring 21,651,746 ordinary shares from Cyprus Popular Bank Public Co Ltd.

The NDSF is a fund intended to administer 70% of the proceeds from Malta’s Individual Investor Programme (IIP), commonly known as the cash-for-passports scheme.

“The NDSF board confirm that all conditions contained in the above-mentioned agreement, including the approval of the Malta Financial Services Authority and the European Central Bank, for the acquisition of the shareholding in the bank by the Fund, have been satisfied and accordingly, the transfer of said shares has taken place earlier today by means of an off-exchange transfer at the Malta Stock Exchange,” the fund said in a statement.

The bank’s board of governors were informed about the transfer on Friday.

The NDSF reaffirmed that it:

• Does not intend to increase its shareholding in the bank
• Shall not act in concert with any other shareholders
• Will seek to reduce its shareholding in the bank in an orderly manner, at the right market conditions and by agreement with the regulatory authorities.
• Has not intention of exerting any influence on the operations of the bank
• Intended for this acquisition not to result in a change in control of the bank

In 2013 Cyprus Popular Bank Public Co. Ltd was placed in resolution, kicking off a process to dispose of certain assets including its shareholding in Lombard Bank Malta.