CSE suspends trading of Demetra and Logicom shares amid sale
Eurobank is set to raise its stake in Hellenic Bank to 93.47 per cent following agreements to acquire shares from Demetra Holdings Plc and Logicom Services Limited.
The bank announced on Monday that it has signed share purchase agreements with Demetra and Logicom, under which it will acquire 24.66 per cent of Hellenic Bank’s shares, amounting to 101,794,409 shares, for approximately €493 million. This corresponds to €4.843 per share.
Specifically, Eurobank will acquire 88,064,705 shares (21.33 per cent) from Demetra for approximately €426 million and 13,729,704 shares (3.33 per cent) from Logicom for about €66 million.
Completion of the transaction is subject to regulatory approvals and approval by Demetra’s general meeting of shareholders.
The transaction is expected to conclude no earlier than February 8, 2025, six months after the completion of the latest mandatory offer.
Until then, “Demetra and Logicom will retain full legal and beneficial ownership of the shares to be sold, along with all associated rights,” Eurobank stated.
In line with an announcement on November 7, the purchase price agreed with the bank employees’ union (Etyk), the Cyprus bank employees’ provident fund, the Cyprus bank employees’ health fund, and the financial institutions provident fund will also be adjusted to €4.843 per share.
It should be noted that Eurobank currently owns 55.962 per cent of Hellenic Bank.
Once the new transaction and the agreements with Etyk are completed, the bank’s total stake in Hellenic Bank will rise to 93.47 per cent.
Under the Public Takeover Bids Law of 2007, Eurobank will launch an offer to acquire all remaining shares of Hellenic Bank at the same price of €4.843 per share.
After securing over 90 per cent of the bank’s issued share capital and voting rights, Eurobank intends to exercise its squeeze-out rights under Article 36 of the law and delist Hellenic Bank shares from the Cyprus Stock Exchange.
Additionally, Eurobank announced an agreement with Logicom to sell 8.58 per cent of Demetra’s shares (17,152,353 shares), acquired by Eurobank on November 8, for approximately €27 million, equating to €1.55 per share. This transaction is also subject to regulatory approvals.
As a result of these developments, the Cyprus Stock Exchange (CSE) temporarily suspended the trading of Demetra Holdings Plc’s shares on Monday to protect investors.
According to the CSE, “the suspension is deemed necessary given the share purchase agreement between Demetra and Eurobank, which involves the sale of Demetra’s shares in Hellenic Bank”.
Similarly, trading of Logicom Public Ltd’s shares was suspended following related announcements and a request by the company.
The CSE said that “this suspension is necessary due to the share purchase agreements between Logicom’s subsidiary, Logicom Services Limited, and Eurobank”.
Finally, it was stated that during the suspensions, no over-the-counter transactions will be processed.
