Eurobank: Offers €1.8 per share to HFSF for 1.4%

The Financial Stability Fund announced its intention to sell its entire participation in Eurobank Ergasias, which amounts to 52,080,673 common registered shares, corresponding to approximately 1.401% of the paid-up share capital and voting rights of Eurobank. The competitive process will last until October 6 at 17:30 Greek time.

It is also noted that on 22.09.2023 the HFSF received from Eurobank an initial binding offer for the acquisition of the shares through a targeted share buy-back which after discussions amounts to 1.80 euros and on 24.09.2023 the HFSF and the Eurobank entered into a Conditional SPA for the sale and transfer of the shares.

The disinvestment of the state begins

As OT has already written, with this move the curtain opens on the disinvestment of the state from the banks. The Fund will then allow third parties to submit counter-offers, in order to ensure the competitiveness of the sale, as defined by its operating framework.

It is noted that the general meeting of Eurobank‘s shareholders in July had approved a price range between 1.10 and 1.90 euros, including the premium to be offered to the HFSF, for the repurchase of the shares.

The final decision on the buyer of the Eurobank shares will be made by the end of September, so that the transaction can proceed immediately.

However, the big bet for the HFSF is the sale of the largest stock packages it owns to the remaining three systemic players: National Bank 40.3%, Piraeus Bank 27%, Alpha Bank 9%.

Besides, the government’s will to proceed as soon as possible with the withdrawal of the State from the banks was underlined once again yesterday by the Minister of National Economy and Finance Kostis Hatzidakis.

As he said, “we will go ahead with it, as it will strengthen our banking system and the prospects of the economy.”

The upgrade

Banking sources told OT that “after the regaining of investment grade by the first rating agency that the ECB takes into account, DBRS, and the subsequent double upgrade by the stricter Moody’s, the prospects for attracting investment capital are extremely favorable ».

And this despite the recent natural disasters, which will inevitably have a negative effect on economic activity at least until the end of the year.

Yesterday’s Eurobank report on their footprint on the Greek economy is indicative.

According to its economists, there will be a slowdown in GDP growth, but this “will likely be limited, as the impact on output and infrastructure will be largely offset by fiscal support measures and the subsequent boost to incomes, consumption and the investments”.

If this scenario is confirmed, in 2024 GDP growth rates, with the utilization of available investment financing tools, will be at high levels.