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Last Thursday, the Cyprus Bank Employees' Association (ETYK) announced it had sold its shares in Hellenic Bank to Eurobank, but already, reports suggest ETYK is eyeing its next investment. According to Kathimerini's Panayiotis Rougalas, ETYK is reportedly looking at acquiring a stake in the Bank of Cyprus (BoC), specifically the 4.83% of shares previously held by the now-defunct Laiki Bank. This block of shares, amounting to over 21 million shares, could give ETYK significant influence in the bank, potentially surpassing the holdings of Senvest, the second-largest shareholder in BoC.
The reason for ETYK's interest in these shares is simple: liquidity. Following last week’s sale, ETYK received €243 million from offloading its 12.8% stake in Hellenic Bank and an additional €32.4 million from selling shares in Demetra Investment. This gives ETYK €275 million in available funds, providing it with ample resources to purchase the Laiki shares in BoC, which, based on the current share price of €4.40 each, are valued at approximately €95 million. This means that ETYK has nearly three times the financial power needed to acquire the Laiki shares, just from the proceeds of the Hellenic Bank sale.
The sale of Laiki’s shares in BoC is part of a broader effort to liquidate the bank’s remaining assets for the benefit of its creditors, with the liquidation process being handled by appointed advisors. Since 2022, BoC's stock price has tripled, and in the past year alone, it’s risen by more than 55%. Similarly, Hellenic Bank's stock has seen even greater gains, rising 96% over the same period. While ETYK’s exact gains from its past investments in both banks are not fully clear, stock prices over the past few years suggest a strong return on investment.
Looking forward, ETYK is positioned to make a significant move in BoC, with the possibility of acquiring more shares, especially as large institutional investors, including CarVal, the European Bank for Reconstruction and Development (EBRD), and others, continue to offload their stakes in the bank. In October, CarVal sold a 3% stake in BoC, while the EBRD may also be considering selling its remaining shares, likely at favorable prices.
With €275 million in hand and opportunities to acquire more shares in BoC, ETYK appears ready to make a strategic play for the future, possibly reshaping the bank’s shareholder landscape and securing a more influential position in Cyprus’s banking sector.
