The management of National Bank of Greece has requested the permission of the Hellenic Financial Stability Fund for it to sell its insurance subsidiary, Ethniki, to CVC Capital Partners. The bank bailout fund has been asked to offer its opinion about the process and the bid CVC has proposed, taking into account the valuation of Ethniki Insurance by an independent consultant to be hired by the HFSF.
NBG sources say resorting to the HFSF constitutes a standard procedure given that the fund is a main stakeholder in the lender, with a 40.4% holding. They implied that a final decision will not be made before end-February and that the target remains for the completion of the sale of 80% of the insurer to CVC.
The HFSF’s consent has also been requested given the different opinions within NBG’s board regarding the details of the agreement related to the price CVC has offered.
It is noted that the NBG management is demanding a transaction price that would be no lower than 440 million euros for the 80% stake, given its valuation of €550 million for the entire insurer in its books.