ECONOMY

Pancretan bids to become Praxia’s white knight

pancretan-bids-to-become-praxia-s-white-knight

Pancretan Cooperative Bank, Greece’s sixth biggest lender, on Monday announced it had submitted a non-binding buyout offer for troubled digital bank Praxia.

The negotiations between the two sides are to begin following revelations of Praxia’s need for a capital injection after its sole stakeholder, Bob Diamond, decided to reduce the lender’s activity.

Kathimerini understands that the entity to stem from the merger will also include a third investor, while Diamond – who currently controls 100 percent of Praxia through Atlas Merchant Capital – will restrict himself to a very small stake.

Sources say that when the transaction is completed, Lyktos Participation, which currently controls 20 percent of Pancretan, will also have a minor stake.

The transaction is expected to be completed early next year, after the due diligence period expires on January 31. Neither bank has publicized any more details about the transaction, as according to the announcement by Pancretan, “the ongoing negotiations are covered by a confidentiality clause signed by the two sides.”

On Monday Praxia terminated the contracts of 180 of its 230 employees, implementing its board’s decision last Friday to shrink its activity.