FORMER Finance Minister Michalis Sarris yesterday resigned from the board of the Bank of Cyprus (BoC) after losing a battle for the chairmanship to Aristo Developers chairman Theodoros Aristodemou.
“A mere participation on the board would not allow me to exercise the positive and consensual role that I expected and which I had been called on to serve,” Sarris said in a statement yesterday.
Sarris, who was Finance Minister in the previous government, subsequently joined the BoC board and was approached by several members urging him to stand for chairman.
However, just days before the bank’s annual general meeting, Aristodemou, a long-serving board member of BoC, surfaced as a candidate for chairman. He won by nine votes to eight.
“The basic arguments from those who approached me were that my candidacy would be universally accepted and would lead to an improvement in the functionality of the board,” said Sarris.
“Also a significant number of small and big shareholders in the Group expressed the same view in private and in public.”
But he added that a number of those who had initially expressed support for his chairmanship then backtracked and decided to back the other candidate.
The former minister now feels he can no longer serve on the board.
A short statement by BoC yesterday said it would examine Sarris’ resignation at its next meeting tomorrow.
The bank also announced yesterday that it had completed its acquisition of Ukrainian bank AvtoZAZbank, having obtained the relevant approvals from the supervisory authorities in Cyprus and Ukraine.
“Bank of Cyprus will therefore dynamically commence to provide banking services in Ukraine,” the bank said.
It said the deal was part of the group’s expansion plans in countries with significant economic growth potential, large population, relatively low banking penetration and a high degree of recognition for Bank of Cyprus.
BoC acquired 97.2 per cent of the share capital of AvtoZAZbank for €57.9 million paid in cash.
AvtoZAZbank operates through a network of 26 branches and 18 seasonal cash offices located in four main regions of Ukraine. The Bank employs 365 people. According to its audited financial statements at December 31, 2007, the net assets of the Bank amounted to €16 million, total loans amounted to €98 million and total deposits to €76 million.
In a third development yesterday, BoC yesterday denied reports it was in consultations to acquire Hellenic Bank, the island’s third biggest bank.
Hellenic also dismissed the reports. “The board of Hellenic Bank has no proposal before it nor is it engaged in a dialogue or discussion, and certainly not a negotiation, with any banking organisation for an acquisition or merger,” Hellenic said in a statement released to the Cyprus Stock Exchange.
