National Bank of Greece S.A. on Tuesday announced it has reached a definitive agreement to sell its entire stake (99.81%) in its subsidiary South African Bank of Athens “SABA” to AFGRI Holdings Ltd “AFGRI”.
The transaction was part of National Bank’s restructuring plan and in line with its commitments towards European’s Commission’s DG Competition.
The transaction is expected to be completed within the second half of 2017 and it is subject to customary regulatory and other approvals.
Following the transaction, National Bank’s Proforma Q3 2016 CET1 ratio will increase by five basis points, while the Bank’s liquidity is expected to be strengthened by 55 million euros (comprising of the equity value payment, replenishment of intragroup funding and subordinated debt assignment).
Investec Bank Ltd acted as financial advisor in the deal, while Freshfields Bruckhaus Deringer LLP and Edward Nathan Sonnenbergs Incorporated acted as international and local legal counsels respectively to National Bank.
SABA, established in 1947, is a South African-based bank providing comprehensive business banking services to the medium-sized local businesses, as well as niche transactional banking solutions to the broader market.
AFGRI is a leading agricultural services, financial services and food processing company operating in South Africa, 14 countries in the rest of the African continent, the USA, UK and Western Australia.