Eurobank has agreed to acquire a 12.84% stake in Cyprus’s Hellenic Bank from the Cyprus Union of Bank Employees (ETYK) for €243 million, increasing its holding to 68.81% and triggering a mandatory takeover bid.
The deal, priced at €4.58 per share, will see Eurobank purchase 53.03 million shares from ETYK and its associated welfare, health, and provident funds. The transaction cannot complete before 8 February 2025, pending regulatory approvals.
In a separate agreement, Eurobank will acquire an 8.58% stake in Demetra Holdings Plc for €32.4 million, or €1.89 per share. Demetra, which holds 21.3% of Hellenic Bank as its second-largest shareholder, derives approximately 77% of its net asset value from this stake, according to its June 2024 financial statements.
Eurobank currently owns 55.962% of Hellenic Bank. Upon completion, the Greek lender will be required to launch a mandatory takeover bid for the remaining shares under Cypriot law.
The sellers will retain full legal ownership and voting rights of the shares until the transaction completes, according to the share purchase agreements.
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