Eurobank is poised to increase its stake in Hellenic Bank to an impressive 93.47%, following agreements to purchase additional shares from Demetra Holdings Plc and Logicom Services Limited.
In an official announcement, Eurobank detailed its agreements to acquire a 24.66% stake (101,794,409 shares) in Hellenic Bank for approximately €493 million, pricing each share at €4.843.
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Breaking down the deal, Eurobank will purchase 88,064,705 shares (21.33%) from Demetra for roughly €426 million and 13,729,704 shares (3.33%) from Logicom for around €66 million.
The acquisition is contingent upon regulatory approvals and the consent of Demetra’s General Assembly. The transaction is expected to be completed no sooner than February 8, 2025, six months after the finalization of a mandatory tender offer. Until then, Demetra and Logicom will retain full legal and beneficial ownership of the shares, including associated rights.
Additionally, the agreed price of €4.843 per share will apply to transactions with the Cyprus Union of Bank Employees (ETYK), the Cyprus Bank Employees Welfare Fund, the Cyprus Bank Employees Health Fund, and the Financial Sector Provident Fund, as confirmed in a November 7 announcement.
Currently holding a 55.962% stake in Hellenic Bank, Eurobank’s acquisition will bring its total ownership to 93.47% once both the new transaction and ETYK-related deals are finalized.
In compliance with Cyprus’ Takeover Bids Law of 2007, Eurobank plans to initiate a tender offer for all remaining shares of Hellenic Bank at the same price (€4.843 per share). Upon securing over 90% of the bank’s share capital and voting rights, Eurobank intends to invoke its squeeze-out rights under Article 36 of the law, paving the way for the delisting of Hellenic Bank’s shares from the Cyprus Stock Exchange.
Furthermore, Eurobank revealed a separate agreement with Logicom to sell 8.58% of Demetra shares (17,152,353 shares), which Eurobank had previously acquired on November 8. This transaction, valued at approximately €27 million (€1.55 per share), awaits regulatory clearance before completion.
Following announcements by Demetra Holdings and Logicom, the Cyprus Stock Exchange suspended trading of their shares for the day to safeguard investor interests.
This strategic expansion signals Eurobank’s commitment to consolidating its position in the Cypriot banking sector while navigating regulatory processes and market dynamics.
