Hellenic to issue shares for takeovers

Hellenic Bank Pcl (HB) shareholders approved a special resolution at the Company’s Extraordinary General Meeting held after the 33rd AGM,  authorising the Bank’s Board of Directors to issue up to 20 mln ordinary shares, with a maximum discount of 10% on the market value of the shares to finance new takeovers.

Hellenic Bank Chairman Andreas Panayiotou told the Financial Mirror that the Board’s decision to issue new shares without offering to existing shareholders falls within the Bank’s declared strategy of strengthening its operations via acquisitions, and strategic alliances thus aiming to provide flexibility to the Board in order to take advantage of the opportunities that may emerge.

In another development, the Company announced the acquisition of 21.46 mln shares of Athena Investments Pcl (ATH) from SFS Group Pcl at the consideration of CYP 0.361 per share (EUR 0.61). Following the above acquisition, HB has a participation of 50.36% in the share capital of ATH and will treat it as a subsidiary, instead of an associate company (which was the case up to now).

The AGM also approved increased remuneration for the Chairman to CYP 35.000 and other Board members to CYP 6.000.

Hellenic Bank Group achieved a spectacular increase of 353% in profit attributable to shareholders during 2006 in comparison to the previous year.
Panayiotou said that 2006 was a very successful year, noting that the profit attributable to shareholders surpassed the amount of EUR 58.9 mln due to substantial increase of the operating profits by 98%.
The Board of Directors has decided to pay 4 cent final dividend per share. In December the Group of Hellenic Bank paid 2 cent interim dividend. Shareholders have the option to reinvest the final dividend in shares at a 12% discount on the market price of the title.
The AGM reelected A. Panayiotou, D. Eliades, Char. Panayiotou and M. Keravnos to the Board of Directors.