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Eurobank has taken a significant step in consolidating its presence in Cyprus, announcing the acquisition of a controlling stake in Hellenic Bank, according to a report by Panyiotis Rougalas. The deal includes shares from two major shareholders, Dimitra Investments and Logicom, marking a transformative shift in the island's banking landscape.
Eurobank will purchase 88,064,705 shares (21.33%) from Dimitra Investments for €426 million and an additional 13,729,704 shares (3.33%) from Logicom for €66 million. Combined with the over 12% stake acquired earlier this year, Eurobank’s total shareholding in Hellenic Bank will surpass 37%.
The agreed price for the latest transactions is €4.84 per share, aligning with the valuation established in recent agreements, including one with the Cyprus Bank Employees Union (ETYK).
The deal is expected to close no earlier than February 8, 2025, following regulatory approvals and a six-month window after the mandatory public offering completed last summer. Once finalized, Eurobank will make a public offer to acquire the remaining shares at the same price of €4.84 per share.
With the completion of the public offering, Eurobank aims to own more than 90% of Hellenic Bank’s shares, triggering a legal redemption process. The bank plans to delist Hellenic Bank from the Cyprus Stock Exchange, a move that signifies the end of the bank's public trading era.
Interestingly, Eurobank has also sold back an 8.58% stake in Dimitra Investments to Logicom. This portion was originally acquired by Eurobank on November 8 but has now been sold for €27 million, or €1.55 per share. This redistribution reshapes the shareholder framework while ensuring Eurobank maintains its majority stake.
This acquisition positions Eurobank as a dominant player in Cyprus’ banking sector, cementing its influence and potentially introducing new synergies and efficiencies. For Hellenic Bank customers and stakeholders, the transition signifies a new chapter under the strategic vision of one of Greece’s largest financial institutions.
As Eurobank prepares to make its public offer and finalize the delisting process, the Cypriot banking industry is set to witness one of its most significant transformations in recent years.
