Attica Bank is heading towards transitional nationalization, as the process of implementing the law on deferred taxation has started, after the losses it recorded in the fiscal year 2020.
As everything shows, the Greek government will be found in control of 68.27% of the shares of the non-systemic bank, while engineer’s fund TSMEDE and insurance fund EFKA will see their percentage decrease from 46.32% to 14.70% and from 32.34% at 10.26% respectively.
In the same scenario, shareholder participation with percentages below 5%, will be reduced to 6.77% from 21.34% today.
Capital increase
As it has already become known, the loss for the bank from the activation of the legislation on deferred tax amounts to 151.85 million euros.
This amount, after the negative result of 2020, can no longer be amortized by future income taxes of Attica Bank. Therefore the bank should be compensated equally by the State.
For this reason, 992.51 million securities will be issued for the acquisition of common shares in favor of the public, which will be converted into shares in a ratio of 1 – 1 at the price of 0.153 euros, as decided by the Board of Directors of Attica Bank.
In the first phase, they will be offered through an acquisition right to its existing shareholders from 31/8 to 15/9.
They will then be listed on a regulated market for a short period of time and finally automatically converted into common registered shares.
This means that after the end of the process, the number of shares of the bank will increase from 461.25 million to 1.45 billion and of course, if there is no interest in acquiring them by individuals, most of them will be under public control.
The prospect for an investor
The goal of the CEO of Attica Bank Theodoros Pantalakis is to attract a strategic investor who will lead the bank to the new era.
In this context, it has already designed the bank’s return to normalcy plan, which will be presented to those who are interested in acquiring a majority stake in it.
Its main aspects are the following:
Omega securitization. With the transactions that the bank will seek, it will recognize a total of 3 billion euros in NPE, thus eliminating bad debts.
In addition, the securitizations will be included in the scheme of government guarantees “Iraklis”, contributing significantly to the reduction of risk-weighted assets and the consequent indirect increase of capital adequacy ratios.
Capital injection. Mr. Pantalakis in his plan envisages the strengthening of the bank’s equity by 300 million euros in total in three years.
Cost rationalization. In parallel with the effort to increase revenues, a further reduction of operating costs will be attempted.
Sale of 20% of the doubtful receivables management company “Thea Artemis”. This is a process that will run in parallel with NPE securitizations.
The goal is the unblocking of Attica Bank by the servicer who manages its securitized loans, within the framework of the current legislation.
Latest News
Athens Int’l Airport Wins Top Prize at Routes Europe Awards
The Routes business is focused entirely on aviation route development and the company's portfolio includes events, media and online businesses
IOBE: Income Gap Between Poor and Wealthy Greeks Widens
The findings in the analysis, entitled “Progressivity in Income Taxation in Greece, 2012-2021", paint a bleak picture for Greeks in the bottom half of the income bracket, warning that income inequality is growing
Study Finds 4 in 10 Greeks to Slash Easter Spending
This year, hit by persistent inflation, many Greeks will be dishing out less on food, drink and gifts for Orthodox Easter on May 5
ELSTAT: Overnight Stays in Greece Up in Feb.
The provisional monthly data revealed that arrivals at tourist accommodations amounted to 773,104 and overnight stays were 1,677,685
Electric Energy: Greece’s New Sustainable Export
Moreover, a surplus of generated electricity cannot be fully absorbed by domestic grids and this excess power finds eager buyers in the form of companies entering into Power Purchase Agreements (PPAs), willing to pay a premium for clean energy
IOBE Revises Greek GDP Growth Downward, to 2.1% For 2024
Annual inflation is expected to reach 3%, up from the previous forecast of 2.8%
Last Sections of 136km E65 Highway Inaugurated on Tues.
Athens to Karditsa drive time is expected to drop to two and a half hours (under normal conditions), and some three hours from Athens to Trikala
Reuters: Greece to Repay More Bailout Loans Ahead of Maturity in 2023
The country has relied solely on international markets for its borrowing needs since a third institutional bailout ended in 2018
Ag Min. Avgenakis: Greece-China Cooperation in Research, Education in Agri-Food Sector
Greek minister tours cutting-edge hydroponics and robotics facilities at the Chinese Academy of Agricultural Sciences in Beijing
Mini Holiday Season in Greece for Upcoming Orthodox Easter
Occupancy rates reach up to 90% domestically for accommodations open ahead of peak summer season