This target seems ambitious especially considering that Greece itself has virtually no private equity activity. But it was revealed that the Athens-listed private equity fund has already raised €2.5bn, according to sources close to the firm. Dubai Financial has agreed to invest €500m in aggregate.
In addition, key members of the company’s management may make significant personal investments in MIG’s shares. Andreas Vgenopoulos, the chief executive officer of Marfin Popular Bank, has indicated that he will invest in a further 1% of total proceeds of the share capital increase, while former Burger King chief Dennis Malamatinas, now chief executive officer of MIG, has indicated that he will invest in 0.4% of the total proceeds. Marfin Popular Bank, MIG’s largest shareholder, will not exercise its rights to subscribe for new shares in the rights offering although it has reserved the right to sell a limited number of its shares with the accompanying rights.
Assuming all of the offer shares are sold in the global offering, MPB’s stake in MIG will be reduced from approximately 97% to 6.5% following the completion of the share capital increase.