The government is holding up the sale of Cypriot shares in Lombard because of the bank's interest in Maltapost, which it feels is an “institution of public interest”, a Cypriot newspaper reported.
Lombard controls over 70% of MaltaPost through its 100% subsidiary Redbox Ltd.
The newspaper gave no further details about the government's intentions for MaltaPost, which it had privatised over a decade ago, or on why it is now baulking at the postal service being held by private interests.
Read: Lombard Bank buys into Maltapost
Politis also said that the management of Lombard Bank is still holding up the sale of the former Laiki Bank majority stake (49.01%), one of its most important assets. The €50 million from the sale of the shares would be used to compensate for the bailout of the bank during the financial crisis.
About 20 pre-qualified bidders made indicative offers in April 2017, according to Investment Bank of Greece documents. The Greek financial institution is acting as legal adviser to the seller, Cyprus Popular Bank. Cyprus Popular Bank was bailed out by the Cypriot government during the financial crisis and must now sell its 49.01 per cent shareholding to repay taxpayers.
At April 2017's annual general meeting, Lombard Bank’s shareholders turned down a proposal for the bank to buy the shares itself, and things got stuck at that stage, according to sources close to bidders.
The bidders made indicative financial offers but, to be able to give more accurate, binding bids, they required access to a so-called data room – a virtual room giving access to the financial information of the bank beyond the published accounts.
However, the sources noted, this data room was never made available and the bidders were not even told whether they had been shortlisted, as Investment Bank of Greece guidelines had said they would be.
Read: Anger mounts as sale of €50 million in Lombard shares stalls
The binding offers were supposed to be made in July 2017, with the process to be concluded by the end of that month.