ECONOMY

Invel to raise Pangaea stake by end-March

invel-to-raise-pangaea-stake-by-end-march

The completion of Invel’s acquisition of National Bank’s stake in NBG Pangaea Real Estate Investment Company is now just a matter of time, based on the agreement signed in late 2013 and amended in August 2015.

Well-informed sources tell Kathimerini that the intention on both sides is to complete the transaction within the first quarter of the year, which explains a recent three-month extension granted so as to facilitate the process.

The aim of the extension is not for Invel to find the necessary funds, but to draw them in the most efficient way possible so as to secure the smallest possible financial cost to Invel shareholders. The financing of the deal will in no way contain a loan from National, as was the case during the acquisition of the original majority stake in Pangaea.

When 65.49 percent of NBG Pangaea was originally sold to Invel, it was agreed that by end-2018 National could demand a further reduction of its stake in the property investment company, with Invel reserving a call option. National’s current stake in Pangaea is 32.66 percent.