Eurobank increases its ownership in Hellenic Bank to 93.47%, aiming for complete control.

Eurobank announced on Tuesday that it has successfully acquired an additional 37.5 percent stake in Hellenic Bank, increasing its total ownership to 93.47 percent.

Following this acquisition, Eurobank has launched a mandatory public offer to purchase the remaining shares of Hellenic Bank, with the aim of attaining full control of the institution.

The transaction, which was finalized on February 10, 2025, after securing all necessary regulatory approvals, involved the acquisition of 154,832,195 shares for approximately €750 million, at a price of €4.843 per share. These shares were purchased from multiple entities, including Demetra Holdings Plc, Logicom Services Limited, and various Cypriot banking employee funds.

As part of the transaction, 88,064,705 shares (21.33 percent) were acquired from Demetra Holdings Plc for approximately €426.5 million, while 13,729,704 shares (3.33 percent) were obtained from Logicom Services Limited for approximately €66.5 million.

Additionally, 53,037,786 shares (12.85 percent) were purchased 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 an estimated €257 million.

Prior to this acquisition, Eurobank already held 231,014,806 shares, which accounted for 55.96 percent of Hellenic Bank’s total issued share capital. With the completion of the latest transaction, Eurobank now controls 385,847,001 shares, corresponding to 93.47 percent of Hellenic Bank’s issued share capital.

In accordance with 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 that its ownership now surpasses 90 percent, Eurobank has indicated its intention to exercise its squeeze-out rights under Article 36 of the Takeover Law, enabling the acquisition of the remaining shares under the same terms and conditions.

Furthermore, Eurobank has secured arrangements with a Cypriot financial institution to ensure payment to shareholders who choose to accept the public offer. Details regarding this process will be outlined in the official offer document, which will be prepared in accordance with Cypriot securities regulations and submitted to the Cyprus Securities and Exchange Commission for approval.

CISCO, the Cyprus Investment and Securities Corporation Limited, is serving as Eurobank’s advisor and underwriter for the public offer.

The announcement has been formally submitted to the Cyprus Securities and Exchange Commission, the Cyprus Stock Exchange, the Athens Stock Exchange, and the Board of Directors of Hellenic Bank.

Hellenic Bank, in response to the development, stated 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 percent stake, ushering in a new chapter in the bank’s already successful and longstanding history,” the bank further stated.

Additionally, Hellenic Bank emphasized 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 added.

“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.

Following this announcement, the Cyprus Stock Exchange (CSE) confirmed the temporary suspension of trading for Hellenic Bank Public Company Ltd shares, citing the public offer made by Eurobank to acquire up to 100 percent of Hellenic Bank’s issued share capital.

According to the CSE, the suspension lasted for two hours, concluding at 12:40 pm during Tuesday’s trading session.

“This will allow time for the investment community to be informed about the proposal,” the CSE explained.

Additionally, during the suspension period, the CSE confirmed that the registration of over-the-counter (OTC) settlement orders for Hellenic Bank shares would be paused 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 stated.

By fLEXI tEAM