Eurobank to finalise Hellenic Bank acquisition by May

Eurobank’s acquisition of Hellenic Bank is expected to conclude by the end of May, paving the way for the legal and operational merger with Eurobank Cyprus.

The latest update on acquisition process was confirmed by Hellenic Bank CEO Michalis Louis during the 12th Banking Forum and Fintech Expo which took place this week.

This was first reported in November of the previous year, with the amount involved in the deal estimated at approximately €1.2 billion.

It was also reported at the time that after securing over 90 per cent of the bank’s issued share capital and voting rights, Eurobank intends to exercise its squeeze-out rights under Article 36 of the law and delist Hellenic Bank shares from the Cyprus Stock Exchange.

In the same report, it was said that Eurobank had signed share purchase agreements with Demetra and Logicom, pending regulatory approvals and approval by Demetra’s shareholders.

Indeed, Demetra Holdings shareholders last week approved a resolution to sell the company’s shares in Hellenic Bank to Eurobank.

The statement, which was released after an extraordinary general meeting held on Thursday, mentioned that the total consideration to be paid by Eurobank S.A. is estimated at €426.5 million.

Meanwhile, Hellenic Bank announced this week that the acquisition of CNP Assurances will also be finalised in the first quarter of 2025.

This development, the bank stated, will establish it as “a leading financial group with a strong presence in both the banking and insurance sectors in Cyprus”.

“Customer service, financing growth, completing the merger, and expanding operations remain our priorities for 2025,” Louis said.

What is more, he pointed out that Cyprus would serve as the group’s headquarters for expansion into the East, “where wealth is being created”.

Louis added that the goal is to “promote Cyprus as an attractive base for foreign investors“.

Louis also spoke about the importance of strengthening trust between banks and society.

“Despite the criticism they face, banks support society and development, listening to the needs of the state and investing tangibly in the country’s future,” he said.

“The banks are supporting and financing Cypriot businesses and households, with Hellenic Bank’s total lending in 2024 reaching €1.1 billion,” Louis added.

However, he cautioned that lending now takes place under “a much stricter supervisory framework and demanding criteria to avoid past mistakes”.

Furthermore, Louis provided commentary on the role that banks play in attracting investors.

“The services sector is a significant asset that we must preserve and strengthen by ensuring stability in our tax and legal framework, which should not create uncertainty for potential investors,” he stated.

Elsewhere during the conference, Hellenic Bank’s Chief Technology Officer Christos Eojourian, speaking in a panel discussion, stressed the importance of leveraging generative artificial intelligence (Gen AI).

“Banks must embrace this technology to remain competitive,” he said.

Eojourian warned that organisations failing to adopt Gen AI risk falling behind, “leaving a significant gap for competitors, as 65 per cent of businesses globally have already adopted Gen AI to some extent”.

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