Systemic lender Piraeus group entered new era after major int’l investors acquire majority stake

Piraeus Group, one of four systemic lenders in Greece, appeared satisfied with Friday’s share capital increase, raising 1.38 billion euros and returning control of the group to private sector investors after a short-lived majority – 62 percent – in the stake held by the Hellenic Financial Stability Fund (HFSF).

According to market analysts, the higher participation in the bank’s share capital by international funds and investors ranks as the most positive aspect of the share capital increase, marking the first time in 11 years that a Greece-based lender has unconditionally issued new shares, rather than after results of a stress test.

After the development, the biggest private shareholder of Piraeus Bank group is the Paulson & Co. fund, with 18.62 percent, followed by Helikon with 5,22 percent, and Swiss-based Greek commodities trader Telis Mystakidis, with 2,9 percent. The aforementioned trio comprise so-called “cornerstone investors”. Along with HFSF participation, they covered 67 percent of the issue.

Other global investment funds, such as Fidelity and Blackrock, acquired 20 percent of shares placed via an order book overseas.