APS Holding a.s. (APS), has acquired the non-performing loan and real estate management business from Hellenic Bank Public Company Ltd (“Bank” or “Group”). The newly established entity that acquired the business, APS Debt Servicing Cyprus Ltd (“APS Cyprus”) will manage the Bank’s non-performing loans and real estate assets.
Further to the announcement dated 11 January 2017, all required regulatory clearances have been received and APS Cyprus commences operations on 3 July 2017. APS Cyprus will service non-performing loans of €2,3 billion and real estate assets of €150 million will be managed by APS. APS Cyprus was established in early 2017 and is 51% owned by APS and 49% by the Bank. APS Holding will have the ultimate control of the business of APS Cyprus. The consideration for the sale of the operations is €20.6 million. The transaction is financed from APS sources with financial leverage.
APS Cyprus is acquiring the operations of the Bank’s Internal Arrears Management Division including the necessary resources to independently carry out the servicing of the portfolio. Simultaneously, the Bank has executed a 10-year service level agreement with APS Cyprus for the management of its non-performing loan and real estate portfolio. The Bank will retain the ownership of its assets.
Martin Machoň, CEO of APS, comments: “The new acquisition allows us to create the first debt servicing platform within the Cypriot market. We are dedicated to developing high potential of APS Cyprus and seek new opportunities. The team of about 130 professionals altogether with the improving economic situation builds a great foundation for our future achievements.”
Victor Angelescu, CEE Regional Director of APS, comments: “We have gained a strong initial position on the market, which brings opportunity and responsibility. Our aim is to find mutually beneficial solutions which help debtors regain control over the distressed debts. Unblocking the distressed assets will be beneficial for the local communities, and individuals.”
Viktor Levkanič, Chief Investment Officer of APS, comments: “We are pleased to have the opportunity to cooperate with Hellenic Bank on such a remarkable transaction and believe this venture will enable us to play systemic role in the distressed debt market in Cyprus. The joint-venture model of cooperation corresponds with the best practice of ECB, IMF, and EBRD and will help to support the progress of the Cypriot economy.”
Since the beginning of 2017, APS has significantly strengthened its position in the region. With its previously acquired portfolios in Croatia (over €550 million) and Hungary (€138.9 million), APS aspires to the position of fastest-growing distressed debt investor and servicer.