Eurobank announced on Tuesday that it has completed the acquisition of an additional 37.5 per cent stake in Hellenic Bank, bringing its total shareholding to 93.47 per cent.
The bank has also launched a mandatory public offer to acquire the remaining shares of Hellenic Bank, aiming for full ownership.
The transaction, finalised on February 10, 2025, after obtaining the necessary regulatory approvals, entailed the acquisition of 154,832,195 shares for approximately €750 million at a price of €4.843 per share.
These shares were acquired from various entities, including Demetra Holdings Plc, Logicom Services Limited, and multiple Cypriot banking employee funds.
Specifically, 88,064,705 shares (21.33 per cent) were acquired from Demetra Holdings Plc for approximately €426.5 million, while 13,729,704 shares (3.33 per cent) were purchased from Logicom Services Limited for approximately €66.5 million.
In addition, 53,037,786 shares (12.85 per cent) were acquired from the Cyprus Union of Bank Employees (Etyk), the Cyprus Bank Employees Welfare Fund, the Cyprus Bank Employees Health Fund, and the Cyprus Bank Employees Provident Fund for approximately €257 million.
Prior to this transaction, Eurobank directly owned 231,014,806 shares, representing 55.96 per cent of Hellenic Bank’s total issued share capital.
Following the acquisition, Eurobank now holds 385,847,001 shares, corresponding to 93.47 per cent of the bank’s total issued share capital.
Under Cypriot takeover regulations, Eurobank has submitted a mandatory public offer to acquire the remaining shares at the same price of €4.843 per share, payable in cash.
Given its ownership exceeding 90 per cent, Eurobank said it that now intends to exercise its squeeze-out rights under Article 36 of the Takeover Law, enabling it to acquire the remaining shares at the same price and under the same conditions.
What is more, Eurobank has secured arrangements with a Cypriot financial institution to facilitate payment to shareholders who accept the public offer.
Details will be provided in the official offer document, which will be prepared in compliance with Cypriot securities regulations and submitted to the Cyprus Securities and Exchange Commission for approval.
CISCO, the Cyprus Investment and Securities Corporation Limited, is acting as Eurobank’s advisor and underwriter for the public offer.
The announcement has been submitted to the Cyprus Securities and Exchange Commission, the Cyprus Stock Exchange, the Athens Stock Exchange, and the Board of Directors of Hellenic Bank.
Commenting on the announcement, Hellenic Bank said that “today marks another milestone in the journey of Hellenic Bank, as the acquisition of shares from Demetra Investment, Logicom, and Etyk by the Eurobank Group has been completed”.
“The group is now officially the principal shareholder of Hellenic Bank, holding a 93.47 per cent stake, ushering in a new chapter in the bank’s already successful and longstanding history,” the bank added.
Moreover, Hellenic Bank stated that the “Eurobank Group’s investment represents a vote of confidence in the Cypriot economy, bolstering the stability of the country’s banking sector, fostering growth and innovation, and highlighting the attractiveness of the Cypriot market through the participation of international investors”.
“This is a strategically significant move that will position the new entity as the largest bank in Cyprus,” the bank said.
“A new era begins for the bank,” the announcement continued.
“Access to expertise and best practices, as part of a major regional financial group, will enhance service quality, strengthen customer relationships, and drive digital transformation,” the bank concluded.
In response to this development, the Cyprus Stock Exchange (CSE) announced the suspension of trading in the shares of Hellenic Bank Public Company Ltd, “following the public offer made by Eurobank to acquire up to 100 per cent of the issued share capital of Hellenic Bank”.
According to the announcement, the suspension lasted for two hours, from the time of suspension until 12:40 pm of today’s trading session.
“This will allow time for the investment community to be informed about the proposal,” the CSE explained.
During this period, the CSE also confirmed that the registration of over-the-counter (OTC) settlement orders for these shares will be suspended in the central depository.
“This decision has been made in accordance with Article 183 of the Cyprus Stock Exchange Law, with the aim of protecting investors,” the CSE said.
