National Bank of Greece on Friday announced that it has entered into a definitive agreement for the divestment of 90.01 pct of Ethniki Insurance to CVC Capital Partners’ Fund VII.
In an announcement, NBG said the equivalent nominal consideration corresponding to 100 pct of Ethniki would be 505 million euros, including an “ earn-out” payment of up to 120mn euros, which will be subject to meeting agreed upon performance targets for the bancassurance channel of NBG by 2026. The transaction includes a 15-year Bancassurance partnership.
The transaction is capital accretive for NBG (c. 60 bps in the Total Capital Ratio as of 31.12.2020). The closing is subject to standard conditions precedent, the approval by the antitrust and regulatory authorities and the approval of an Extraordinary General Meeting of NBG shareholders. The consent of the Hellenic Financial Stability Fund was granted, as stipulated in the Relationship Framework Agreement.
The successful completion of this transaction will allow NBG to fulfill the commitment made under the Restructuring Plan agreed between the Hellenic Republic and the EC following the receipt of State Aid by NBG in 2012.
Morgan Stanley & Co. International plc and Goldman Sachs Bank Europe SE acted as financial advisors to NBG, Freshfields Bruckhaus Deringer LLP and Karatzas & Partners as international and local external legal counsels and EY as actuarial and accounting advisor.