Its approval is expected at the end of August Bank of Greece in his business plan Attica Bank: to merge with Pancreatia Bank in mid-September so that the €735m increase could continue in October.
Attica Bank has already submitted an application to “Hercules 3” for securitization of 2.3 billion euros, as Pankritia Bank did for “red” loans of 1.38 billion euros. With the inclusion of securitizations in the government guarantee program, the new bank will have a 3% NPE ratio, ie below the systemic equivalent and in line with European banks (from 60%, which is the weighted percentage of “red” loans at both banks).
The merger plan, which is already being reviewed by TTE’s competent supervisory staff, details the creation of the new bank, target sectors and corporate structure. At the end of the year, the new bank will have assets of 10.2 billion euros and a net profit of up to 100 million euros in reserves. It will be fully recapitalized with a CET1 ratio of over 15%.
Both Attica Bank CEO Elenis Vrettos and Pankritia Bank CEO aim for the merger of the two banks to be completed by mid-September in order to carry out a €735m share capital increase in October in favor of from old shareholders.
“We took the problem and turned it into an opportunity,” says Yanis Stournaras, the manager of the Bank of Greece, about the merger of the two banks, emphasizing that the new bank will be the main arm of the 5th banking pillar. , with the creation of an ecosystem that will include small, except for healthy banks, non-systemic and cooperative, which will focus on financing small and medium enterprises.
The merger
As announced, the merger will be effected by the accounting consolidation of the assets and liabilities of the merging companies and, in particular, the contribution of the assets and liabilities of Pancrete Bank to Attica Bank as they appear in the transformation. Pancrete Bank’s balance sheets as of December 31, 2023 and how they will be structured before the merger is completed.
And the proposed exchange ratio is 0.0292156343836978 new ordinary nominal share of Attica Bank for every 1 common nominal share of Pankritia Bank, while Attica Bank shareholders after the merger will retain the same number of shares they owned before the merger.
Let’s remind that the capital increase of 735 million euros will be participated by HFFA with approximately 475 million euros, strategic investor Thrivest (Mr. D. Baku – G. Kaimenaki – Al. Exarchou) with approximately 200 million euros, e-EFKA with approximately for 48 million euros, TMEDE for 12 million euros. The share of Thrivest and other private investors is estimated to be up to 58.5%, HFSF 35-37% and the general government (HFSF + e-EFKA) 38.5-40%.
