Greece’s Bank Bailout Fund to sell Entire 27% stake in Piraeus Bank

The Hellenic Financial Stability Fund (HFSF), Greece’s bank bailout fund, on Monday announced a decision to exercise an ‘Upsize Option’ and increase the number of shares offered in a same-day public offering for its entire stake in Piraeus Bank, namely, 27% of the systemic bank’s share capital.

The sell-off of shares to Greek investors via a public offering in the country and to foreign investors via a private placement commenced on Monday and will be completed on Wednesday, HFSF said in a statement.

The price range was set at between 3.7 and 4 euros per share, HFSF added.

“In accordance with the provisions of Article 17, par. 2 of Regulation (EU) 2017/1129, the HFSF announces that its Board of Directors, in its meeting of 04 March 2024, and after being informed by the managers of the international offering on the demand expressed so far in the international offering, expressed its intention to exercise the right to increase the number of the shares offered in the Offering by 62,518,361 Offer Shares so that the total Offer Shares increase from 275,080,789 to 337,599,150,” an HFSF announcement stated.

“The allocation split of any Upsize Option Shares that may be sold between the Greek public Offering and the international offering is at the sole discretion of the HFSF acting in its capacity as selling shareholder.

Exercising the Upsize Option will lead to the full privatization of ATHEX-listed Piraeus Bank.

The end of the Greek public offering is 16:00 Athens time, or 14.00 GMT.

Publication of the pricing statement in the daily statistical bulletin of the ATHEX and on PFH’s and selling shareholder’s websites will come on Thursday.

Crediting of the offer shares to the investor shares and securities accounts (the expected settlement date) will come on March 11, 2024.
According to a Reuters dispatch on Sunday, foreign investors are expected to acquire a stake of between 20% and 25% in the lender, while investors in Greece could buy a further 2%.

BofA Securities, Goldman Sachs Bank and UBS are acting as joint coordinators for the offering to foreign investors.