Eurobank's share in Hellenic Bank to increase to 46.5%

Eurobank has announced the conclusion of a share purchase agreement ("SPA") with Poppy S.à rl that is anticipated to result in its share of Hellenic Bank rising to 46.5%.

In more detail, Eurobank, a subsidiary of Eurobank Ergasias Services and Holdings SA (Eurobank Holdings), announced the conclusion of a SPA with Poppy S.à rl, based on which Eurobank agreed to acquire a participation of 17.3% (71,428,572 shares) in Hellenic Bank Public Company Ltd (Hellenic Bank), for a total consideration of €167.9 million or €2.35/share (Transaction), which may be adjusted, inter alia, depending on the date of the completion of the Transaction and the terms of the subsequent public offering.

The acquisition is subject to regulatory approvals and will be completed upon their full satisfaction. Until then Poppy S.à rl will continue to retain full legal and beneficial ownership of the shares to be sold, as well as all rights deriving from them. According to the relevant announcement of the bank, Eurobank may consider the acquisition of additional shares through other transactions, the completion of which will be subject to the respective regulatory approvals.

Eurobank already owns 29.2% of Hellenic Bank and therefore, after the completion of the Transaction, its participation will rise to 46.5%. Consequently, in compliance with the provisions of the Law on Public Offers of 2007 of the Cypriot legislation, Eurobank, upon completion of the Transaction, will make a mandatory public offer for all the shares of Hellenic Bank that will not belong to it at that time.

"This investment is in line with the Eurobank Group's strategy to further strengthen its presence in the key markets, in which it maintains a strategic interest and is a vote of confidence in the positive prospects of the Cypriot economy," the announcement emphasises.

Axia Ventures Group acted as financial advisor to Eurobank for the transaction, while Milbank LLP, Ioannides Demetriou LLC and the POTAMITISVEKRIS law firm provided legal support.

(Source: InBusinessNews)