UniCredit has signed a derivatives agreement that paves the way for it to nearly double its stake in Greece’s Alpha Bank, increasing its shareholding to close to 20 per cent.
In a statement issued on Wednesday, the Italian banking group confirmed it will seek supervisory approval to surpass the 10 per cent threshold and potentially raise its holding to as much as 29.9 per cent.
The bank clarified that it has already secured a derivatives deal with leading investment banks that enables it to acquire an additional 9.7 per cent of Alpha Bank’s shares at a discount to the lender’s most recent closing price.
UniCredit currently holds a 9.6 per cent stake in Alpha Bank, a position it secured by purchasing the shares previously held by Greece’s Hellenic Financial Stability Fund (HFSF).
The move to increase its position in Alpha Bank is expected to deliver approximately €180 million in additional net profits annually, according to UniCredit, which stated it intends to return these earnings to its shareholders.
“This investment is structured in a way that will generate around €180 million in additional net income per year, which we will return to our shareholders,” UniCredit stated.
The Milan-based bank, describing itself as a “pan-European commercial bank,” has a broad presence across Italy, Germany, Central and Eastern Europe, and operates 13 banks in 12 countries.
It serves over 15 million customers globally through four main geographical regions and three core business divisions: corporate client solutions, retail banking, and the payments sector.
This structure allows UniCredit to remain close to its customers while leveraging the full strength of its group to develop and deliver superior products across all markets.
Digitalisation and a strong commitment to ESG (Environmental, Social and Governance) principles remain key pillars of the bank’s strategy, underpinning its efforts to provide high-quality service and foster a sustainable future for its customers, communities, and employees.
“Our goal is to strengthen communities’ potential through top-tier products and services, maximising opportunities for clients and our people across Europe,” the bank notes in its corporate mission.
UniCredit also reiterated its aspiration to be “the bank for Europe’s future,” aiming to serve the 13 markets in which it operates in the most effective way and respond to societal needs on the path to success.
Beyond UniCredit’s 9.6 per cent holding in Alpha Bank, approximately 72 per cent of the Greek lender is owned by foreign institutional investors.
Greek institutional investors account for a further 7 per cent of Alpha Bank’s shares, while 11 per cent is held by individual and corporate shareholders.
