Greece's Eurobank unveiled two separate deals that will see it acquire a 12.6% stake in Hellenic Bank Public Company Limited, the second largest financial institution in Cyprus.
The Greek lender has already bought some 40.8 million shares, or a 9.9% shareholding, in Hellenic Bank. At the same time, it has entered into a share purchase agreement with a local unit of US hedge fund Third Point to buy an additional interest of 2.7%, Eurobank said in a press release earlier in July.
The financial details of the transactions were not disclosed.
Shares in Hellenic Bank, which has a market capitalisation of about 360 million euro ($425.5 million), traded at 0.876 euro as of 15:09 CET in Nicosia.
Eurobank highlighted in the press release that it looks forward to a close cooperation with the rest of the shareholders and Hellenic Bank’s board and commits to contributing constructively and positively towards that direction.
The investment is aligned with the overall strategy of Eurobank Group to further strengthen its presence in all key markets in which it retains a strategic interest. The Greek company is already present in Cyprus through its wholly-owned subsidiary Eurobank Cyprus Ltd.
Nicosia-headquartered Hellenic Bank specialises in personal, business and international banking. It counts among its largest shareholders Demetra Holdings Plc with a stake of 21% and Wargaming Group Limited with a stake of 20.2%, according to its website.