National Bank announces reverse split and recap details
National Bank has announced a reverse stock split in the context of its recapitalization, whereby 10 old shares will be traded for a new one at a price of 4.29 euros each, from 0.429 euros before the reverse split.
The governing board of National decided on Monday that with the reverse split the existing number of 1,226,601,200 shares will be reduced to 122,660,120 shares. Consequently if a stakeholder owns 1,000 shares worth 1.57 euros each, according to yesterday’s closing on the bourse, the reverse split will see him end up with 100 shares worth 15.70 euros each.
The board also decided to set a price of 4.29 euros for every new share after the reverse split and recapitalization, in the context of which 2,274,125,874 new shares will be issued. The bank’s shareholders will be given the option to acquire 2.2 new shares for each share they own.
For example, a shareholder of 100 National shares, will have 10 shares after the reverse split and the option to acquire 22 new National shares and to participate in the share capital increase, paying 4.29 euros for each share, i.e. a total of 94.38 euros.
Pending the approval of the Capital Market Commission, probably on Tuesday, the reverse split can proceed immediately, National officials said on Monday, and the period for the execution of rights can start on Friday. It will last for two weeks so that the share capital increase can be completed by June 7. The procedure for a reverse split provides a suspension of a few days in trading for the stock.
National officials also expressed their optimism about the completion of the increase, saying that the target of collecting 1.17 billion euros, or 12 percent of the total amount of 9.7 billion euros of the bank’s planned recapitalization will be met. It seems likely that National will attain its goal without having to resort to the issue of convertible bonds (CoCos).
