Wargaming, a prominent player in the gaming industry, has announced its decision to sell its remaining stake in Hellenic Bank to Eurobank.

The deal, valued at €65.9 million, encompasses Wargaming’s 6.8 per cent ownership stake, totalling 28,023,767 shares, which will be transferred to Eurobank.

The agreement comes at a valuation of €2.35 per share, marking a pivotal development in both the gaming and banking sectors.

However, the stipulations of the transaction entail potential adjustments contingent upon factors such as the completion timeline and the specifics of the ensuing mandatory tender offer.

Eurobank, once its shareholding surpasses the 30 per cent threshold in Hellenic Bank’s share capital, will be required to initiate this tender offer.

At the same time, the transaction encompasses a parallel sale involving the provident funds of Wargaming’s directors and senior management.

Their combined 0.4 per cent stake, equivalent to 1,686,245 shares, is also slated to be acquired by Eurobank for €4.0 million, mirroring the same per-share price of €2.35.

The announcement clarified that sale agreements are subject to Eurobank obtaining the relevant regulatory approvals and will only be completed once the approvals are granted.

Until then, Wargaming and the provident funds shall continue having the full legal and beneficial ownership of the shares together with all rights attached thereto.

“The goal of Wargaming’s investment in Hellenic Bank was to support the Cyprus economy and make the lender more robust – a goal that has been fully achieved,” the company said in the statement.

“Eurobank is a credible counterparty, and not an opportunistic investor, that can add value to Hellenic, hence Wargaming’s decision to sell its investment to Eurobank. It is worth noting that Wargaming’s investment in Hellenic Bank totalled €127 million,” it added.

Wargaming also explained that the company took part in the bank’s share capital increase in 2013, amidst the then Cypriot banking and economic crisis, with Hellenic Bank being the only Cypriot bank that adequately covered its private sector capital needs during the crisis, without requiring state aid or a haircut on deposits.

In addition, Wargaming said that it has participated in all share capital increases of the bank over the past decade.

“During these past 10 years, Hellenic Bank has grown into a bigger and stronger banking and financial institution,” the statement concluded.