Blog
Acceptance of HBs Final Offer to Acquire CCB
June 19, 2018
Further to the announcement made by Hellenic Bank Public Company Limited (the “Company”) on 15 June 2018, that it submitted a final offer (the “Final Offer”) for the acquisition (the “Acquisition”) of certain assets and liabilities of the Cyprus Cooperative Bank Ltd (“CCB”), and further to the statement by the Minister of Finance that the Council of Ministers of the Republic of Cyprus is supportive of the Company’s Final Offer, subject to submission of a capital plan by the Company, the Company announces that its Board of Directors has approved the capital plan and the Company submitted the capital plan to CCB and its advisors. The capital plan is subject to approval by the European Central Bank. The Final Offer was accepted by the shareholders of CCB at the extraordinary general meeting which took place on June 18.
As stipulated in the Final Offer, the Acquisition comprises of a balance sheet with a total size of €10.3bn as well as certain business of the CCB that is related to the balance sheet. The balance sheet comprises of a portfolio of primarily performing loans (net loans: €4.6bn), Cyprus Government Bonds (€4.1bn), cash (€1.6bn), customer deposits (€9.7bn) and certain other current liabilities and assets. The terms of the Acquisition will include an asset protection scheme (“APS”), provided by CCB, whose obligations will be guaranteed by the Republic of Cyprus. The APS will protect parts of the acquired loan portfolio, such as
€0.5bn of non-performing exposures (net) and up to €2.1bn of high risk performing loans, against future unexpected losses to the Company. The definitive agreements for the Acquisition are expected to be entered into as soon as practicable.