Mediterranean Bank plc is buying Volksbank Malta for €35,300,000 in the coming weeks, according to an announcement on the Malta Stock Exchange. Mediterranean Bank also agreed to refinance Volksbank Malta’s existing debt to Österreichischen Volksbanken AG(“Voksbank Austria”) as of the closing date.

Volksbank Malta has operated as a fully licensed Maltese Bank since 2002 and has provided banking services to the Maltese retail and corporate sectors.

After taking into account the carve-out last year of its international business, Volksbank Malta has total assets of some €150 million and equity of approximately €56 million.

Pro forma after tax profits of Volksbank Malta for the period ended December 31, 2012, after taking into account the carve-out of Volksbank Malta’s international business, were approximately €605,000.

Mediterranean Bank expects that the purchase of Volksbank Malta will consolidate and expedite its Maltese growth strategy through Volksbank Malta’s portfolio of Maltese clients which is complementary to Mediterranean Bank’s existing customer base and aligned with its future growth strategies.

The purchase is subject to receipt of required approvals from relevant governmental and regulatory authorities.