The National Development and Social Fund to acquire 49% of Lombard Bank shares

A share purchase agreement to acquire 49.01% of the shares of Lombard Bank from Cyprus Popular Bank has been entered into by The National Development and Social Fund – the government-appointed fund that acquires its money from the sale of passports.

The procurement of the Lombard Bank shares by the NDSF is still awaiting the green light by the Malta Financial Services Authority.

The fund will thus become the biggest shareholder in the bank and Lombard will become the bank with the largest government shareholding. According to the NDSF’s Board of Governors the acquisition is intended solely to facilitate the exit of the Cypriot major shareholder of Lombard Bank Malta. The fund also reiterated that it will not exert influence on the operations of the bank.

The announcement came just hours after Global Finance said it was maintaining its bid for the bank, despite admitting that York Capital was not involved in its bid, contradicting a statement issued on Monday.