The transfer of Lombard Bank shares to the National and Social Development Fund has taken place after the Fund’s Governors received the approval Malta’s Financial Services Authority (MFSA) and the European Central Bank for the acquisition of 49.01% shares issued by Lombard.
A Fund statement said that in March its Governors had announced it had informed in writing to the Board of Directors of Lombard Bank Malta, the Fund (NDSF) and the Cyprus Popular Bank Public Co. Ltd that a share purchase agreement has been signed between them as a result of which the Fund is to acquire from the Cypriot bank a total of 21,651,746 Ordinary Shares, 49.01% of the shares issued by Lombard Bank.
It said that today the transaction has been accomplished by the vendor via the Malta Stock Exchange.
The statement continued to explain that although the Fund has now acquired 49.01% of Lombard shares it does not intend to increase its holding in the Bank and will not collude with other shareholders. It said the Fund will in a careful manner gradually reduce its holding and will not in any way influence the management of the Bank. This transaction will therefore not bring any change to the present control of the Bank.
The NDSF is a Government Agency that was established to administer 70% of the contributions received from the investment accruals as a result of the Citizenship Investment Scheme, according to the legislated Act.