Pancreta Bank: To increase capital by 98.71 million euros

The increase of its share capital by 98.71 million euros, in the context of its merger with the Bank of Chania, was decided by the extraordinary general meeting of the  Pancreta Bank.

As announced, the new bank will be renamed Candia Bank and if the agreement for the acquisition of the HSBC branch in Greece is finalized, it will significantly increase its size, in terms of assets and branch network.

More specifically, the Extraordinary General Meeting of Shareholders of  Pancreta Bank approved the following:

Reduction of the nominal value of each share, from 5 euros to 0.50 euros, with an increase in the number of shares in proportion of ten new shares for each existing one and a tenfold increase in the total number of shares from 7,896,668 to 78,966,680 (split) . As a result, each old common registered share, with a nominal value of 5 euros each, will be replaced by ten new common registered shares, with a nominal value of 0.50 euros each. The relevant article of the Articles of Association was amended accordingly.

Increase of its share capital by cash payment and issue of 78,966,680 new common registered shares, after voting right, providing the pre-emptive right to the old Shareholders of the Bank and in proportion one new share for each old one.

Subsequently and with the authorization of the General Meeting, the Board of Directors met and set the offering price of the new shares in the premium, at 1.25 euros each.

The statements of the administration

The Management of Pancreta Bank called on its shareholders “to participate dynamically in the largest historical increase of its share capital, supporting the strategic planning for the development and expansion of its operations, especially in conjunction with the acquisition of HSBC in Greece – a process that is in progress – but also the friendly merger with the Cooperative Bank of Chania “.

The goal is to create a new banking pole, capable of making a dynamic contribution to the development of the country. The bank that will result from the merger, will be named Candia Bank, while its headquarters will be transferred to Athens.

“The Bank is modernizing, monitoring developments and forming a distinct role in the market, with significant specialization in small and medium-sized enterprises, at a time when the challenges remain great at local and national level, guided by the benefit of its customers, shareholders and staff. Was pointed out.

During the Meeting, the President Mr. Dimitris Dimopoulos informed the shareholders of the bank about the actions of the Board of Directors to date regarding its intended merger with the Cooperative Bank of Chania.

The shareholders approved the actions so far, as well as the content of the already signed Private Agreement between the Administrations of the two Banks.

The merger with Chania

It is noted that the exchange ratio based on what has been provided, after the split and the Capital Increase of  Pancreta Bank, will be as follows: For every 1 share of the Cooperative Bank of Chania, there will be 6 shares of  Pancreta Bank.

The shareholders of  Pancreta Bank and Cooperative Bank of Chania will be represented proportionally in the new Board of Directors.

The final decisions regarding the merger process will be taken by newer decisions of the Boards of Directors and the General Meetings of the two Banks, after the completion of the necessary financial audits by the Certified Auditors.