Greek lender Eurobank on Wednesday announced that it has formally entered into a share purchase agreement with Poppy S.à r.l., outlining its intention to acquire an additional 17.3 per cent stake in Hellenic Bank.

The acquisition, which has been described as a strategic move aimed at bolstering the bank’s presence in key markets, will be executed for a total consideration of €167.9 million, equating to €2.35 per share.

This momentous transaction, though subject to customary regulatory clearances, signifies a major stride for Eurobank in strengthening its position within the market.

The transaction, which hinges on potential adjustments based on factors including the completion timeline and conditions of subsequent mandatory tender offers, is anticipated to be met with regulatory nods in due course. It should be noted that the main regulatory approval will be provided by the European Central Bank (ECB).

According to the announcement, until the acquisition concludes, Poppy S.à r.l. will retain full legal and beneficial ownership of the shares earmarked for sale, inclusive of all associated rights.

Moreover, the strategic alignment of Eurobank’s move with its overarching business goals is underscored by the fact that Eurobank currently holds 29.2 per cent of Hellenic Bank.

Consequently, with the successful completion of this acquisition, Eurobank’s total stake in Hellenic Bank will surge to 46.5 per cent.

This ascendancy prompts Eurobank, in adherence to the Takeover Bids Law of 2007 in Cyprus, to proceed post-acquisition with a mandatory tender offer encompassing all outstanding securities of Hellenic Bank that aren’t already under its ownership.

What is more, the significance of this acquisition is not confined to Eurobank’s corporate strategy, but it also reflects the organisation’s optimism about Cyprus’ economic future.

Finally, it should be noted that Axia Ventures Group played a pivotal role as the financial advisor to Eurobank for this landmark transaction, while legal counsel was provided by Milbank LLP, Ioannides Demetriou LLC, and PotamitisVerkis Law Firm.