Eurobank has set out its strategic objectives following the full acquisition of Hellenic Bank, as detailed in its public offer document outlining the acquisition process.

As part of its plan, Eurobank intends to delist Hellenic Bank’s shares from the Cyprus Stock Exchange (CSE) once the acquisition is finalised.

The public offer seeks to acquire the remaining shares of Hellenic Bank Public Company Limited.

Eurobank currently holds 93.47 per cent of the bank’s issued share capital and voting rights, aiming to secure the remaining 26,958,229 shares, which constitute 6.53 per cent of the total share capital.

Given that Eurobank’s stake exceeds 90 per cent, it plans to invoke its right under Article 36 of the Public Takeover Bids Law to implement a “squeeze-out” process, securing complete ownership of Hellenic Bank.

Following this, the bank will proceed with delisting the shares from the CSE.

This mandatory public offer was triggered by Eurobank’s acquisition of 154,832,195 Hellenic Bank shares at a price of €4.843 per share.

As reported by Stockwatch, these shares were purchased from multiple entities, including the Bank Employees Union (Etyk), the Bank Employees’ Welfare Fund, the Bank Employees’ Health Fund, the Bank Employees’ Provident Fund, Demetra Holdings Plc, and Logicom Services Limited.

The transactions were conducted via off-exchange transfers on 10 February 2025, in compliance with Article 13(1) of the law.

As Eurobank now controls more than 50 per cent of Hellenic Bank’s voting rights, the public offer meets the success criteria outlined in Article 10(1) of the law and does not require additional conditions.

All Hellenic Bank shares acquired through the public offer will include associated rights, such as declared or potential distributions, and will be free from encumbrances or claims.

Shareholders wishing to accept the public offer must complete the acceptance and transfer form as specified in the offer document and submit it within the given timeframe.

Shares to be exchanged must be held in a special account at the CSE or under the control of the designated Handler.

If shares are managed by a different handler, they must be transferred to the designated Handler via an “Investor Instruction” form before submitting the Acceptance and Transfer Form to CISCO, the designated Handler.

Eurobank has stated that it has no intention of altering Hellenic Bank’s core business activities, which encompass banking and financial services, including financing, investment, insurance, custody, factoring, and real estate management.

However, it sees growth potential in corporate banking, treasury services, and transactional banking, as well as opportunities in retail banking, specifically in transactional banking, bancassurance, and investment services.

The bank plans to retain Hellenic Bank’s assets for their current business use and does not intend to repurpose its fixed assets.

Although no immediate restructuring is planned, operational realignment may be considered in the future to enhance efficiency.

With Eurobank already operating in Cyprus through its wholly owned subsidiary, Eurobank Cyprus Ltd, the bank intends to merge Hellenic Bank’s operations with those of Eurobank Cyprus after delisting.

If Hellenic Bank is converted into a private company as part of this merger, necessary amendments will be made to its articles of association.

Eurobank has also assured that it does not intend to unilaterally change the existing employment terms for Hellenic Bank staff.

“Any modifications to Hellenic Bank’s employment policy will be assessed following the completion of the merger with Eurobank Cyprus Ltd,” the bank stated.

Additionally, no changes to Hellenic Bank’s board of directors are planned before the merger, except in cases where board members choose to resign.

Eurobank has also confirmed that no special benefits will be granted to Hellenic Bank’s board members.

*This article is a translated version of content originally published on StockWatch.