Pancretan Cooperative Bank announced on Tuesday that former Piraeus Bank president and founder Michalis Sallas is entering the share capital of the Iraklio-based lender with the purchase of a 15 percent stake.
The two sides have signed a memorandum of understanding whereby Sallas expressed his desire to acquire at least 15 percent of Pancretan’s shares as a strategic investor via a share capital increase. His entry will take place according to the legal framework for cooperative banks and will safeguard the cooperative character of the Cretan lender.
“Both the bank’s management and Mr Sallas believe that this cooperation creates the groundwork for the strengthening, development and upgrading of the lender’s activities to the benefit of the existing and future partners,” the Pancretan statement read. “I have known the bank since its foundation and followed it closely… Our new effort will contribute to its further growth and expand its prospects to the benefit of its partners and its clients,” stated Sallas.
The aim of the two sides is to complete the entire process according to what the law, the supervising authorities and the MoU dictate by January 31.
Pancretan is the biggest cooperative bank in Greece, with over 83,000 partners, deposits of 1 billion euros, a market share of 13 percent on Crete and a loan portfolio of 1.6 billion euros.