ECONOMY

Buyer for Postal Savings Bank

TSMEDE, the engineers’ social security and pension fund, is expected to submit a proposal to Economy and Finance Minister Nikos Christodoulakis to acquire a 34 percent stake in Postal Savings Bank. According to sources, TSMEDE’s president, Tassos Koublis, and Christodoulakis had talks in the past few days. Postal Savings Bank, once an offshoot of the Post Office and only recently turned into a financial institution, is coveted for its mortgage portfolio. It is estimated that TSMEDE will offer about 350 million euros for the stake after the report and valuation conducted by its adviser, Grant Thornton consultancy. Negotiations will take place concerning some of Postal Saving Bank’s peculiarities, for its nature as a state company did not change following its transformation into a corporation. According to TSMEDE sources, the fund values Postal Savings Bank at between 1-1.5 million euros, depending on the method of valuation. For example, Grant Thornton valued the bank’s property using objective values set by the State to determine property taxes, while an actuarial valuation will give a higher price. With the latter method, the bank’s share and property portfolio is valued at around 400 million euros. Deposits at the bank are about 9 billion euros, its bond portfolio is worth 7-8 billion and its loan portfolio around 2 billion euros. The bank’s personnel may choose to transfer to a civil service position if they so choose. Talks will also focus on shareholders’ representation in the board of directors.