Eurobank Increases Stake in Hellenic Bank to 55.42%

On June 10, 2024, Eurobank announced a significant increase in its investment in Hellenic Bank Public. The bank acquired 503,934 shares at a price of 2.56 euros each, bringing the total transaction to approximately 1.29 million euros. This move underscores the bank’s strategic commitment to expanding its presence in the Greek banking sector.

With this latest acquisition, the Greek systemic bank now directly holds 228,789,554 shares, representing a significant 55.42% of Hellenic Bank’s total issued share capital and voting rights. Sources within the bank anticipate that this investment will propel the group’s stake up to 65% by the summer, paving the way for its proposed absorption of the Cypriot bank.

Although shareholders holding 25% of Hellenic Bank’s shares retain veto power over the merger, one of the country’s larger banks remains optimistic about the outcome. They believe that consolidating the two entities will generate added value for minority shareholders.

The integration of Hellenic Bank into the Eurobank group is poised to become a major driver of profitability. Analysts estimate that the Cypriot bank’s net after-tax result in 2023, could soar to approximately 400 million euros, further solidifying its strategic position in the region’s financial landscape.

The Greek banking sector has managed to bounce back over recent years, exhibiting resilience in the face of volatility in the markets around the globe.