Portugal’s BCP Millennium placed its 4.6% stake in Piraeus Bank via an accelerated book building process with the 235.3 mln shares and warrants offered at a 8.5% discount from Monday’s close of 1.64 euros, valuing the deal at 494 mln euros.
BCP had already invested EUR 400 mln in Piraeus’ recent capital increase as part of a deal in April to sell its Greek unit Millennium Bank-Greece, to Piraeus.
The Portuguese bank has always said the Piraeus stake was non-strategic and slated for sale, with analysts saying the offer would net 174 mln.
“The placement is a positive development for both Piraeus and the Greek banking sector given that it represents a vote of confidence for the bank, the sector and the economy as whole. Some short-term pressure should not be excluded but overall the news is positive for Piraeus,” said Konstantinos Manolopoulos, analyst at the Investment Bank of Greece.
BCP shares rose 4.1% in early trading in Lisbon, while Piraeus fell 6.1% to 1.54 euros on the Athens Stock Exchange.
Maria Kanellopoulou, an analyst at Athens-based Euroxx Securities said the sale "removes the stock overhang and increases the free-float of Piraeus" to about 19%.
With a market cap of market cap of 8.b bln euros, Piraeus is Greece’s second biggest lender that also absorbed the Greek branch networks of Bank of Cyprus, Laiki Popular Bank and Hellenic Bank as part of a bailout plan for Cyprus.
Get all the latest news and videos in your inbox. Register FREE