NICOSIA: Eurobank’s new stake in Hellenic Bank will reach 93.47%, following the completion of the agreement to acquire the shares of Hellenic Bank from Demetra Holdings Plc and Logicom Services Limited. Eurobank has announced a significant expansion of its holdings in Hellenic Bank, as it has reached share purchase agreements with Demetra and Logicom.
According to Cyprus News Agency, Eurobank has agreed to acquire a 24.66% holding in Hellenic Bank, translating to 101,794,409 shares for a sum of approximately £493 million, which equates to £4.843 per share. Specifically, Eurobank will purchase 88,064,705 shares from Demetra, representing a 21.33% stake, for around £426 million, and 13,729,704 shares from Logicom, representing a 3.33% stake, for approximately £66 million.
The completion of this transaction is contingent upon regulatory approvals and the nod from Demetra’s General Assembly of shareholders. It is anticipated that the transaction will not conclude before February 8, 2025, six months after the l
ast mandatory tender offer is finalized. Until then, Demetra and Logicom will retain full legal and beneficial ownership of their shares.
The agreed-upon price will also be adjusted to £4.843 per share in line with the terms negotiated with the Cyprus Union of Bank Employees, the Cyprus Bank Employees Welfare Fund, the Cyprus Bank Employees Health Fund, and the Financial Sector Provident Fund as per the November 7 announcement.
Currently holding a 55.962% stake in Hellenic Bank, Eurobank’s total holding will increase to 93.47% after completing this transaction and the additional transactions with ETYK. Following the transaction’s completion, Eurobank intends to launch a tender offer for the remaining outstanding shares of Hellenic Bank at the same price per share, adhering to the Takeover Bids Law of 2007 in Cyprus. With ownership surpassing 90% of Hellenic Bank’s issued share capital and voting rights, Eurobank plans to exercise its squeeze-out rights under Article 36 of the Law to delist Hellenic Bank’s s
hares from the Cyprus Stock Exchange.
Additionally, Eurobank has entered a separate agreement with Logicom to acquire 8.58% of Demetra shares, which Eurobank initially acquired on November 8, for approximately £27 million, or £1.55 per share. This transaction is also pending regulatory approval.
Consequently, the Cyprus Stock Exchange has suspended trading of shares for Demetra Holdings Plc and Logicom Public Ltd today to protect investors, following relevant announcements and company requests.