The process is expected to conclude in early 2025
Eurobank, already holding a majority stake in Hellenic Bank, is set to complete a full acquisition in a deal worth approximately €1.2 billion, making it one of the largest cash transactions in Cyprus’ corporate history.
The acquisition, which involves the legal and operational merger of the two banking entities, signals a new chapter in Cyprus’ financial sector.
Market analysts have praised the move, stating it reflects renewed confidence in the Cypriot banking system by institutional investors and regulatory authorities, which actively encouraged and approved the transaction.
Eurobank’s latest acquisition pushes its stake in Hellenic Bank to 93.47 per cent, following the purchase of shares from major stakeholders such as Demetra, Logicom, and banking union Etyk’s cohesion funds.
The remaining 6.53 per cent of Hellenic Bank’s share capital, held by a dispersed shareholder base, will be targeted in a new public offer scheduled for February 2025.
The deal sees Eurobank pay €4.843 per share to acquire 21.33 per cent from Demetra for €426 million and 3.33 per cent from Logicom for €66 million.
Additionally, Etyk sold its 12.85 per cent stake for €243 million, with the price per share adjusted to match that offered to Demetra and Logicom.
Sources close to Eurobank, cited by local outlet Stockwatch, explained that the adjustment aligns with standard business practices, as the transaction with Etyk occurred just 10 days prior at a lower price of €4.58 per share.
The merger will proceed in two stages, legal and operational, according to reports.
The legal merger will unite the two entities under one management structure and board of directors.
The more complex operational merger, involving the integration of both banking institutions, is expected to follow, adhering to best practices for consolidating large financial entities.
Eurobank aims to simplify operations and reduce costs by eliminating the dual legal structures.
According to analysts familiar with the process involved, if the February public offer does not result in full acquisition, a so-called squeeze-out mechanism will be employed, allowing Eurobank to acquire the remaining shares by legal mandate.
Eurobank initially entered Hellenic Bank’s shareholding in July 2022, acquiring a 12.6 per cent stake from US-based fund Third Point.
In August 2023, it further increased its stake by purchasing shares from Pimco, Wargaming, and Senvest Management.
The bank secured regulatory approval from the European Central Bank (ECB) in June 2023 to acquire a majority stake in Hellenic Bank.
Since then, Eurobank has installed a new management team at Hellenic Bank, led by CEO Michalis Louis, formerly the chief of Eurobank Cyprus, with a focus on enhancing the bank’s competitiveness in the Cypriot market.
