Eurobank: Acquires 13.41% of Hellenic Bank for 70 million euros

Eurobank announced the acquisition of 13.41% in Hellenic Bank, for 70 million euros. The acquisition is subject to regulatory approvals and will be completed after they are fully met.

According to a relevant announcement, Eurobank Bank SA , a subsidiary of “Eurobank Ergasias Services and Holdings SA” , announces the conclusion of a share purchase agreement (“SPA”) with Wargaming Group Limited, based on which, Eurobank agreed to acquire a 13.41% stake (55,337,721 shares) in Hellenic Bank Public Company Ltd (“Hellenic Bank”) for a total price of €70,000,000.

Wargaming remains shareholder

Essentially, the Greek group acquires 13.4% of Wargaming, which remains a shareholder in the bank with a percentage of around 6.8%.

This is a move that consolidates the presence of Eurobank in the Cypriot economy, as in addition to Hellenic Bank, it operates in Megalonis with great success through the subsidiary of Eurobank Cyprus, which specializes in business credit.

Approvals

The acquisition is subject to regulatory approvals and will be completed upon full satisfaction. Until then, Wargaming Group Limited will continue to retain full legal and beneficial ownership of the shares for sale and all rights arising therefrom.

Eurobank already owns 12.59% of Hellenic Bank and therefore, after the completion of the transaction, its participation will rise to 26.0%.

This investment is in line with the Eurobank Group’s strategy to further strengthen its presence in the key markets, in which it maintains a strategic interest and is a vote of confidence in the positive prospects of the Cypriot economy.

The profits

Hellenic Bank achieved nine-month profits of €76.4 million, mainly reflecting improved revenue performance and the reversal of certain impairment losses.

New loans in this period reached 800 million euros, recording an increase of 30% compared to the nine months of 2021.

Financing sectors such as health, education, energy, technology, hospitality, transport and shipping remain a high priority for the bank.

In addition, the implementation of its three-year transformation plan has begun, with the aim of addressing structural challenges, unlocking all the bank’s potential and achieving sustainable profitability.