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Eurobank is now focusing on the next steps following the completion of its tender offer for a 100% acquisition of Hellenic Bank, finalized on Tuesday, June 30, 2024. Although the final acquisition rate was not immediately disclosed, Eurobank's stake in Hellenic Bank will exceed the current 55.48%. Major shareholders Dimitra Investments and ETYK did not sell their shares during the tender.
Looking ahead, Eurobank will implement its strategic plans for Hellenic Bank, starting at the Annual General Meeting (AGM) in September. The bank intends to place new managers in key positions to execute its vision for the largest retail bank in Cyprus.
The power dynamics among Hellenic Bank's major shareholders—Eurobank, Dimitra, and ETYK—are expected to intensify post-AGM. Eurobank, which has not previously appointed any of its representatives to Hellenic Bank's Board of Directors, plans to change this by September, replacing current board members aligned with previous shareholders' interests.
Eurobank's immediate control of over 55.48% of Hellenic Bank allows it to proceed with its strategic initiatives, even though it hasn't reached a 75% stake that could facilitate potential merger actions. The tender offer gave Greek shareholders four weeks to decide on selling their shares at €2.56 each, with Eurobank holding 55.48% of Hellenic Bank's shares at the offer's conclusion.
During the tender process, Hellenic Bank's Board of Directors sought a fairness opinion from Houlihan Lokey UK Limited. The independent expert deemed Eurobank's offer of €2.56 per share as unfair, valuing the shares between €3.31 and €4.12.
In the first quarter of 2024, Eurobank reported an adjusted net profit of €383 million, with €92 million from Eurobank Cyprus and Hellenic Bank combined. Specifically, the group earned €41 million from its investment in Hellenic Bank and €52 million from Eurobank Cyprus.
[Summary of Panayiotis Rougalas' original story in Greek published in Kathimerini's Cyprus edition]
