Eurobank has revealed its intention to gain full control of Hellenic Bank’s share capital and voting rights, while also sharing details about the company’s future operations, according to details included in the bank’s public offer document.
The public offer document grants Hellenic Bank shareholders the option to sell part or all of their shares under the same conditions as Eurobank’s recent purchase of 107,726,260 shares both independent institutional investors, as well as other independent shareholders.
Should the current public offer meet the conditions of Article 36 (1) of the Law, Eurobank plans to exercise its right to acquire 100 per cent of Hellenic Bank’s shares at an equal price and in the same form as the proposed consideration.
If this acquisition is successful, Eurobank intends to delist Hellenic Bank’s shares from the Cyprus Stock Exchange (CSE).
However, if Eurobank does not secure at least 90 per cent of the shares through the public offer, it will not acquire any additional shares from the Cyprus Stock Exchange for at least six months following the completion of the public offer.
At the moment, Eurobank directly holds 55.48 per cent of Hellenic Bank’s share capital.
Moreover, Eurobank has outlined its strategic plans for Hellenic Bank, focusing on the continuation and development of its existing activities without immediate changes to its articles of association.
However, potential amendments to the articles may be considered in the future if the required majority is secured.
At the same time, Eurobank sees potential for expanding Hellenic Bank’s operations, particularly in corporate banking and related sectors such as treasury services and transactional banking.
Additionally, according to the public offer document, the bank sees significant opportunities for growth in retail banking services, including transactional banking, bancassurance, and investment services.
Eurobank intends to retain Hellenic Bank’s assets for its usual operations without altering the use of its fixed assets.
However, a possible future reorganisation of Hellenic Bank’s activities might be considered to enhance its efficiency and effectiveness.
Given Eurobank’s presence in the Cypriot market through its subsidiary, Eurobank Cyprus Ltd, there is a possibility of a merger with Hellenic Bank if a sufficient stake is acquired.
Regarding employment policies, Eurobank does not intend to make substantial unilateral changes to Hellenic Bank’s current employment practices, the document revealed.
What is more, following the public offer, Eurobank plans to use its legal and regulatory rights to propose changes to the board of directors of Hellenic Bank, without offering any special benefits to its members.
Eurobank will also consider future dividend proposals at general meetings based on supervisory recommendations, the relevance of the proposed dividend to the company’s dividend policy, and priorities that precede dividend payments.
These priorities include the expansion and diversification of Hellenic Bank’s operations for the benefit of the Cypriot economy and its customers, and investments in further technological and digital transformation.
