Eurobank EURBr.AT, one of Greece’s largest lenders, said on Wednesday it has agreed to acquire an additional 17.3% stake in Cypriot Hellenic Bank for 167.9 million euros ($181.53 million) to reinforce its business in core markets.
The Greek lender, with a current market value of 5.8 billion euros, holds 29.2% in Hellenic Bank. Post the completion of the transaction, Eurobank’s total holding in Hellenic Bank will amount to 46.5%, making it the leading shareholder.
Eurobank is buying the stake from Poppy S.à.
The bank said in a press release that after it completes the transaction it will make a mandatory tender offer for all of the outstanding securities of the Cypriot bank not already held, according to takeover law.
“The acquisition is aligned with the overall strategy of Eurobank Group to further strengthen its presence in its core markets,” Eurobank added.
(With information from Reuters)