ECONOMY

Marfin announces a mammoth 5-billion-euro share capital increase

Marfin Financial Group yesterday announced a major restructuring move, involving a mammoth, -5 billion share capital increase – Greece’s biggest ever – and the sale of Marfin Bank to parent Marfin Popular Bank for about -600 million. The increase will be effected through a private placement to strategic and institutional investors from Greece and abroad. The scheme also includes the distribution to shareholders of -850 million and the renaming of the group into Marfin Investment, which is to focus on buyouts and equity investments throughout Southeastern Europe. Athens Stock Exchange President Spyros Kapralos said the news was very positive as Marfin’s move would create new realities in the Greek market and boost buyout and investment activity in the business sector. Government officials said they would wait for further developments. Most of the 5-billion-euro sum is seen as coming from other countries and would be a major boost to the country’s current account