BUSINESS

Greece's Eurobank to acquire Grivalia Properties, source says

TAGS: Banking, Business

Eurobank, Greece’s third-largest lender, will acquire real estate company Grivalia Properties, a Eurobank official told Reuters on Sunday.

The deal will be a share-swap transaction and boost the lender’s capital base by about 1 billion euros ($1.13 billion), the official said without giving the value of the deal.
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Grivalia is currently owned by Canadian investment company Fairfax Financial Holdings, which focuses on property and insurance. Fairfax owns a 51.4 percent stake in Grivalia and 17 percent of Eurobank.

A Grivalia representative was not immediately available for comment outside business hours.

Greek banks have been looking to bolster capital ratios as they contend with the challenge of reducing non-performing loans in a sector hit hard by the euro zone’s debt crisis and years of recession.

Eurobank last week reported a sharp rise in third-quarter net profit on higher fee revenue and gains from international operations.

[Reuters] 

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