Sunday April 26, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Eurobank reaps major investor interest

 Fairfax, Capital Research and Management, Wilbur Ross, Fidelity, Mackenzie and Brookfield to get shares

By Yiannis Papadoyiannis

Fairfax, Capital Research and Management, Wilbur Ross, Fidelity, Mackenzie and Brookfield are the strategic investors comprising the consortium that will cover almost half of Eurobank’s 2.86-billion-euro share capital increase following the signing of an agreement on Tuesday with the lender’s board.

As approved by Eurobank’s main stakeholder, the Hellenic Financial Stability Fund (HFSF), the deal commits the abovementioned international investors to participate in the share capital increase with 1.331 billion euros, or 46.5 percent of the increase. The lion’s share will belong to Fairfax and Capital Research, which will place about 1 billion euros between them, with the share price at 0.30 euros.

This development reflects the particularly strong investment interest in Greece and its banking system by foreigners who are banking ever more aggressively on the scenario favoring the country’s rebound. It follows the successful share capital increases by Alpha and Piraeus which totaled 2 billion euros.

The agreement commits Fairfax and Wilbur Ross to holding on to their shares for at least six months after the completion of the increase process, while they have expressed their intention to have a role in Eurobank’s corporate governance. They will acquire their stakes through the book-building procedure that will start at the same time for strategic and for other foreign investors. In Greece the sale of shares – about 10 percent of the issue – will take place through a public offering.

The book will open at the end of April, once the necessary regulator approvals are secured, and the bank’s administration is aiming to have the process completed by April 30. According to Tuesday’s deal, if the final price of the shares is above 0.30 euros, then the investors would not have to exercise their rights, although analysts are taking it for granted that the increase will take place at the price of 0.30 euros.

Once the 9.5 billion new shares are issued and 30 percent go to the strategic investors, the HFSF stake will drop from 95 percent today to 35 percent, while the remaining 35 percent will go to the private sector.

ekathimerini.com , Tuesday April 15, 2014 (22:26)  
Construction material costs slide anew
Navios taps German shipping opportunities
Gov’t eyes state company reserves
Thessaly stores likely to remain closed on first Sunday of spring sales
Greek tax officers turn to small debtors for cash
As the country’s finances reach a critical point, tax authorities have started seizing the deposits of small debtors, Kathimerini understands. No figures were available regarding the new cra...
As European officials hint at ‘plan B,’ pressure grows on gov’t to compromise
As a deal between Greece and its creditors appears far from imminent, concerns mounted over the weekend over the country’s finances and its prospects within the eurozone as a US Federal Rese...
Inside News
WATER POLO
Olympiakos wins Euro crown in women´s water polo
The women’s water polo team of Olympiakos won its first ever LEN Euro League at the Final Four it hosted in Piraeus by beating holder Sabadell from Spain 10-9 in Saturday’s final. After defe...
SOCCER
Rival soccer fan clashes leave man stabbed
One man was stabbed and several others slightly injured as rival Thessaloniki club fans clashed late on Friday at an event held by Aris supporters. Reports from Greece’s second city stated t...
Inside Sports
COMMENTARY
Five years ago
This week marks five years since Greece officially entered a period of crisis when then Prime Minister George Papandreou announced that the country would seek a bailout from the eurozone and...
EDITORIAL
Slippery slope
The extremely divisive language that is currently being used by parliamentary deputies and coalition ministers is both unacceptable and dangerous. It is high time that the tired, old argumen...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Olympiakos wins Euro crown in women´s water polo
2. Greek tax officers turn to small debtors for cash
3. As European officials hint at ‘plan B,’ pressure grows on gov’t to compromise
4. FM warns against a lose-lose situation [Update]
5. PM tries to appease mayors, regional governors over cash bill
6. Border checks aim to stop jihadists
more news
Today
This Week
1. Five years ago
2. PM tries to appease mayors, regional governors over cash bill
3. Poll: Large majority of Greeks want compromise with lenders
4. FM warns against a lose-lose situation [Update]
5. Greece not playing a game of chicken on debt
6. Slippery slope
Today
This Week
1. Greek government's popularity takes a hit as talks drag on
2. It's up to the Greek government to ensure deal with lenders, says ECB's Coeure
3. Europe's collision course with Greece
4. Leaving the past in the past
5. Denialism
6. The price of compromise
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.