The management of the National Bank of Greece appears to have decided to concede an increased stake in the group’s insurance subsidiary, Ethniki, amounting to 90% to CVC Capital Partners instead of 80% that was the original target.
This decision seems to be based on the effort to improve the transaction price so that it rises above 400 million euros, Kathimerini understands.
Sources say that the sale price of the 90% stake comes close to €410 million (therefore the entire share capital of the insurer comes to about €460 million) and means that the sale of Ethniki will be done at a price well below its accounting value and the price the bank has included in its books.
The accounting value of Ethniki is estimated at €1.2 billion and during the 2019 financial year NBG had reduced its value by €494 million, taking a one-off loss then, so as to facilitate the negotiation with CVC.
The distance from the original asking price highlights the difficult position NBG has found itself in the negotiation, as it has as a priority to approve the sale in order to meet its pledges to the European Commission.