Bendigo & Adelaide Bank (ASX: BEN) agreed to purchase for A$130 million the Bank of Cyprus (ASX: BOCY), which caters mainly to Greek and Cypriot communities based in Australia.

To fund the buy-in, Bendigo will sell A$12- million shares of the bank at A$8.45 per stock, the bank said in a statement issued on Friday. Bendigo had halted trading of its stock until Dec 19 pending the formal announcement of the result of the sale.

The buy-in is expected to be finalised by February 2012.

The Bank of Cyprus in Australia has 14 branches in Victoria, New South Wales and South Australia with total assets of $1.4 billion

"BOCAL is an attractive business with a strong capital and liquidity position," Bendigo & Adelaide Group Managing Director Mike Hurt said in a statement.

"It is predominantly funded by retail deposits, maintains a conservative risk profile with 99 per cent of the loan book secured against property, and has an excellent credit history," he added.

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