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Hellenic Bank shareholders have less than 15 days to decide whether to sell their shares to Eurobank, which has made a takeover offer of 2.56 euros per share. The offer, initiated at the start of the month, has a four-week deadline, shorter than the maximum eight weeks allowed.
The Board of Directors of Hellenic Bank, advised by London-based Houlihan Lokey UK Limited, has deemed Eurobank's offer neither fair nor reasonable. Houlihan Lokey's independent analysis valued Hellenic Bank shares between 3.31 and 4.12 euros per share, significantly higher than Eurobank's offer. Even under a scenario where Hellenic Bank does not distribute excess capital, the valuation ranges from 2.78 to 3.62 euros per share, still above the 2.56 euros offered.
The likelihood of major shareholders accepting the offer appears slim, with many agreeing with Houlihan Lokey's assessment. If the offer is not accepted by the end of July, there will be no changes in Hellenic Bank’s shareholder composition for at least six months.
Looking ahead to September, changes in Hellenic Bank’s Board of Directors are anticipated at the Annual General Meeting. With Eurobank already holding 55.48% of Hellenic Bank's share capital, it is expected to influence board appointments significantly. New executives from Eurobank Cyprus or its parent company in Greece may assume key positions, impacting the bank's working culture.
Eurobank’s strategic plans, as outlined in the Houlihan Lokey report, focus on continuing and developing its existing activities in Cyprus. If the current offer is not accepted, Eurobank may make another attempt at a full acquisition of Hellenic Bank in early 2025.
[Summary of Panayiotis Rougalas' original story in Greek published in Kathimerini's Cyprus edition]
