Newsroom
According to Kathimerini's Panayiotis Rougalas, Eurobank has made significant strides in its investment in the Cypriot banking sector, particularly with its ongoing acquisition of Hellenic Bank. By the end of 2024, Eurobank's total investment in Cyprus is expected to surpass €1.1 billion, with a final figure of around €1.2 billion when it acquires the remaining 6.53% of Hellenic Bank by February 2025. This acquisition has turned out to be more expensive than initially planned, but it signals a growing belief in the value of Hellenic Bank and Cyprus's economy.
In recent months, Eurobank has bought significant shares of Hellenic Bank, including 21.33% from Dimitra Investment for €426 million, and 3.33% from Logicom for €66 million. The bank also purchased shares from the trade union ETYK, with an initial transaction worth €243 million, which will later increase to €256 million, reflecting the increased value of Hellenic Bank shares.
The price per share for these recent purchases has significantly surpassed previous estimates. Eurobank paid up to €4.84 per share, well above the original €2.56 per share from a public offer in the summer. This surge in share value comes after the recent leadership changes at Hellenic Bank, with new executives like CEO Michael Louis and others, who have worked to reveal additional value within the bank.
The move is a clear demonstration of Eurobank’s long-term confidence in the Cypriot economy. CEO Fokion Karavias had earlier stated that the investment would likely be the largest cash investment ever made by a non-Cypriot group in Cyprus, reflecting the bank's strong belief in Cyprus' economic prospects.
Looking ahead, Eurobank’s stake in Hellenic Bank might be just the beginning. The bank now has significant funds to pursue new investments in the local market. Specifically, Eurobank could potentially use these funds to increase its influence in the Bank of Cyprus (BOC), which is valued at around €2 billion. With nearly half a billion euros available, Eurobank could purchase up to 10% of BOC without requiring special regulatory approvals, raising speculation that further acquisitions in Cypriot banking may be on the horizon.
As Eurobank continues to expand its presence in the Cypriot market, its investments are reshaping the local banking landscape, creating new opportunities for both local and international stakeholders.
