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Eurobank Set To Solidify Control Of Hellenic Bank With Expanded Stake

by THEFUTURE.TEAM

November 26, 2024

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.

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EU Adopts New Package Travel Rules With 14-Day Refund Requirement

The Council of the European Union adopted updated rules on package travel, introducing stricter requirements for refunds, transparency and consumer protection across member states. Updated provisions revise the existing directive and define obligations for travel providers offering bundled services such as flights, accommodation and transfers.

Clarifying The Package Travel Directive

The updated directive clarifies the definition of package travel and excludes certain linked travel arrangements from its scope. Coverage applies to services sold as a single product, including combinations of transport, accommodation and additional services. This revision standardizes how travel products are classified and clarifies rights and obligations for both providers and consumers at the point of purchase.

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Enhancing Transparency And Consumer Rights

New rules require providers to disclose key information before and during travel, including payment terms, visa requirements, accessibility conditions and cancellation policies. These disclosures aim to reduce disputes and improve consumer awareness. Defined refund timelines include a 14-day period for cancellations due to extraordinary circumstances and up to six months in cases of organiser insolvency. The measures address gaps identified in earlier versions of the directive.

Ensuring Accountability And Trust In Travel Services

Organisers must implement complaint-handling systems and provide clear information on insolvency protection under the updated framework. These provisions aim to improve accountability across the travel sector. Previous disruptions, including the collapse of Thomas Cook and travel restrictions during COVID-19, exposed weaknesses in refund processes and consumer protection. Updated rules respond to those issues.

Implications For Cyprus And The Broader Industry

Tourism accounts for approximately 14% of Cyprus’s GDP, with package travel playing a central role in visitor flows. Major operators such as TUI and Jet2 provide structured travel offerings that support demand. Such operators contribute to revenue stability and help extend the tourism season by securing transport and accommodation in advance. Greater regulatory clarity may support continued sector growth.

A Model For Future Consumer Protection

Clearer rules on vouchers, refunds and insolvency protection now apply across the European Union. These measures aim to reduce consumer risk in cross-border travel. Implementation across member states will determine the impact on both consumers and travel providers. The framework may influence future regulatory approaches in the sector.