AT A MARATHON session that started at
Monday's board session was convened to decide on the planned raising of €1 billion in capital, for which the offer book was "comfortably oversubscribed" before closing last Friday.
The board was set to assess the offers made and decide on which would be accepted, and at what price.
Initial information had foreign hedge funds and other institutional investors submitting offers for a significant stake in the lender. Interested parties reportedly include two major American hedge funds that submitted offers for a total €600 million stock purchase, as well as the
"The shares were allocated to a broad range of institutional investors from
Offers were reported to hover between 21 and
A €1 billion boost will see the BoC's core-tier 1 capital soar to over 15 per cent, likely securing comfortable success in the
Successful bidders – including eligible existing shareholders – will sign irrevocable commitments to their offers and the bank will call an Extraordinary General Meeting (EGM) of the shareholders to approve the increase, expected to be scheduled in August. To approve the issue, 75 per cent of shareholders present must vote in favour at the EGM.
The second phase of the capital issue will allow existing shareholders to apply for a maximum of 20 per cent of the stake offered to new shareholders at the same share price – according to the capital increase's clawback provisions.
Existing shareholders that wish to participate in the clawback phase will be required to offer a minimum €100,000 investment.
The clawback phase will be open for a period of 15 business days starting
"The new shares to be issued […] will be unlisted at the time of issue," the statement said. "However, the bank intends to proceed with the listing for the entire class of its ordinary shares on the
An additional €100 million in new share capital will be made available to existing shareholders following the completion of the capital increase and prior to the introduction of the bank's share to the
Following the board meeting, chairman
"The strengthened capital position will improve stakeholders' confidence in the bank and enhance funding options available to the bank," Hassapis said. "The fact that high calibre institutional investors were interested and participated successfully in this exercise is a testament to their confidence in the bank and also in the economy of
"We are delighted with the quality of investors and the broad investor base including international investors introduced by
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