Eurobank Greece is one of the four systemic banks in Greece, and also has a subsidiary in Cyprus. Over the last 2 years, Eurobank has been increasing its shareholding in the Hellenic Bank of Cyprus, the second-largest Cypriot bank by assets.
With recent acquisitions, Eurobank will be required to submit a tender offer for a majority of Hellenic's shares.
Eurobank’s recent shareholding acquisitions in Hellenic Bank include:
An initial stake of 29.9%;
Purchase of 17.3% from Poppy sarl;
Purchase of 1.6% from Senvest Management;
Purchase of 7.2% from Wargaming.
Once these are approved by the Central Bank of Cyprus and the Competition Commission, Eurobank plans a public tender offer to increase its shareholding to a total of 65% total shareholding.
Other shareholders include the Dimitra investment company with 21% of shares; Logicom with 3.33% of shares; and approximately 15% of equity owned by 25,000 smaller shareholders.
A successful offer would transform Eurobank’s profitability, liquidity and asset book. Hellenic Bank's profits this year are expected to reach over € 400 million, boosted by the rise in interest rates, while total assets amount to € 20.4 billion. Eurobank’s direct subsidiary in Cyprus has further assets of € 8.5 billion.
The Cypriot and Greek banking systems are seeing rapid increases in profitability due to rising interest rates as well as liquidity deposits from the European Central Bank held in both systems.
Sources:
What does the acquisition of Hellenic Bank bring for Eurobank? 1 February 2024.
Obstacles to Eurobank’s Hellenic takeover. 27 September 2023.
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