Wargaming has announced its decision to sell its remaining stake of 6.8% (28,023,767 shares) in Hellenic Bank to Eurobank. The deal is valued at €65.9 mln, equivalent to €2.35 per share.
Eurobank Cyprus, the local subsidiary of Greece’s Eurobank Group, will have a controlling share of over 50% in Hellenic, the second largest lender.
Provident funds of the directors and senior management of Wargaming have also agreed to sell their entire stake (0.4% or 1,686,245 shares) in Hellenic Bank shares to Eurobank for €4.0 mln (€2.35 per share) on the same terms.
The sale agreements are subject to Eurobank obtaining the relevant regulatory approvals and will only be completed once granted.
Until then, Wargaming and the provident funds shall continue having the full legal and beneficial ownership of the shares and all rights attached.
“The goal of Wargaming’s investment in Hellenic Bank was to support the Cyprus economy and make the lender more robust – a goal that has been fully achieved.
“Eurobank is a credible counterparty and not an opportunistic investor that can add value to Hellenic, hence Wargaming’s decision to sell its investment to Eurobank,” said a company statement.
Wargaming’s investment in Hellenic Bank totalled €127 mln.
The company took part in the bank’s share capital increase in 2013, amidst the then Cypriot banking and economic crisis, with Hellenic Bank being the only Cypriot bank that adequately covered its private sector capital needs during the crisis, without requiring state aid or a haircut on deposits.
Wargaming has participated in all share capital increases of the bank over the past decade.