MIG closes book

Marfin Investment Group, the private equity investment arm of Greece’s Marfin Popular Bank, has closed the book on its €5.19bn rights offering, which will be the largest fund of its kind to invest in South East Europe. The capital increase was raised in just two weeks, with the roadshow launching on June 18 and MIG announcing that the order book was already fully covered by June 29. About €4bn was raised in the first week.

The fund is also significantly larger than the US$5bn raised by Kohlberg Kravis Roberts on Euronext Amsterdam last year. Marfin is expected to launch a share sale on July 19.

MIG’s chief executive has said that up to 80% of the fund could be deployed within six months and that the group has confirmed with the Athens Stock Exchange that it is considering a play for Public Power Corp’s 49.9% stake in Greek telecoms company Tellas.

MIG might face competition from Egyptian investor Naguib Sawiris, who is believed to have made several attempts to buy the remaining shares. Sawiris previously beat competition from Blackstone Group, Providence Equity Partners and Permira in the €12.2bn auction for Italian telecoms group Wind in May 2005.