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February is shaping up to be a pivotal month for Hellenic Bank, as key financial moves unfold, including a full takeover bid by major shareholder Eurobank, the completion of key acquisitions, and a voluntary exit plan for employees.
Eurobank Tightens Its Grip
According to Kathimerini's Panayiotis Rougalas, on February 8, Eurobank will finalize the acquisition of shares previously held by ETYK, Demetra Investment, and Logicom, increasing its stake in Hellenic Bank to 93.47%. The transactions will see Eurobank paying €426 million to Demetra, €66 million to Logicom, and €256 million to ETYK.
Likely on the same day, Eurobank is expected to launch a second mandatory public offer to acquire the remaining 6.53% of shares at €4.84 per share. With shareholders left little room for choice, this move paves the way for a “squeeze-out” process and the eventual delisting of Hellenic Bank from the Cyprus Stock Exchange. A full merger with Eurobank Cyprus is projected by the third quarter of 2025.
Employee Exit Plan in Motion
Hellenic Bank is also preparing to roll out a Voluntary Exit Plan (VRS) in mid-February, targeting around 400 employees. The plan, already approved for tax exemptions, offers a maximum payout of €200,000 per participant.
The last such scheme in 2022 cost the bank €71 million and resulted in 446 employee departures, saving approximately €30 million annually in payroll expenses. Currently, Hellenic employs 2,274 staff, with personnel costs reaching €99.4 million in the first nine months of 2024—an 11% increase from the previous year due to salary hikes and rising employer contributions.
Salary Increases and Promotions
Meanwhile, a new collective agreement between ETYK and Hellenic Bank has been implemented, expanding salary scales and increasing promotion opportunities for employees. The agreement has already led to an uptick in organic positions and upgrades for many staff members.
With these sweeping financial and operational changes, Hellenic Bank is entering a period of transformation, setting the stage for its full integration into Eurobank’s structure.
*This article was translated and summarized from its Greek original.
