12° Nicosia,
28 May, 2024

Eurobank secures full control of Hellenic with Pimco share acquisition

Strategic move elevates Eurobank's stake to 46.5% and sets stage for mandatory public offer

Panayiotis Rougalas

Panayiotis Rougalas

Eurobank has successfully acquired all shares of Pimco in Hellenic Bank for €167.9 million, equivalent to €2.35 per share, solidifying its position as the predominant shareholder.

This strategic move elevates Eurobank's stake in Hellenic to 46.5%, making it the bank's leading shareholder. Following this acquisition, Eurobank plans to initiate a mandatory Public Offer for all remaining shares of Hellenic Bank.

In this transaction, Eurobank has not only purchased all shares from Poppy S.à r.l. (PIMCO) but has also secured the 17.3% stake (71,428,572 shares) that Pimco held in Hellenic Bank. This substantial increase in ownership, from 29.2% to 46.5%, underscores Eurobank's commitment to its growth strategy.

Completion of the acquisition is contingent upon regulatory approvals, which, once obtained, will facilitate the full transfer of ownership rights. Notably, Poppy S.à r.l. will retain legal and beneficial ownership of the shares until regulatory requirements are met. Eurobank is open to considering further share acquisitions through compliant transactions, pending regulatory clearance.

Upon finalizing this transaction, Eurobank will proceed with a mandatory Public Offer for any outstanding shares of Hellenic Bank not yet under its ownership.

Eurobank emphasizes that this investment aligns with its strategic objectives to reinforce its market presence, particularly in key sectors aligned with its strategic interests. Furthermore, Eurobank's move reflects its confidence in the favorable prospects of the Cypriot economy, as conveyed in its statement.

[This article first appeared on the Oikonomiki edition and was translated from its Greek original]

Cyprus  |  banks  |  economy

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