Offers – mammoth approximately 11 billion euros collected by the HFSF for 27% of Piraeus Bank, according to an official announcement by the Fund. At the same time, the price was set as expected at 4 euros for both Greeks and foreigners who participated in the bank’s placement.
“The coverage of the disposition of the participation in Piraeus Bank exceeded our most optimistic expectations (about 9 times for the international book, 4 times for the Greek book or about 8 times for the total offer),” states the CEO of the HFSF. Ilias Xirouhakis.
Mr. Xirouhakis also notes that the attraction of strong interest (the international book was covered on Monday, March 4 in just 6 minutes from the opening) “emphatically highlight the confidence of the markets in the prospects of the Greek financial system”.
He also declares his pride “for the successful outcome of the objective of disinvestment of the Fund, which is a milestone for the national economy and demonstrates the confidence of the markets in the bright prospects of the Greek Financial System”.
The Chairman of the Board of Directors of the HFSF, Andreas Verykios, also expressed his satisfaction, pointing out that “the excellent response of the international and Greek investment public is a practical confirmation of the dynamics that the Greek economy has developed and underlines the confidence in the growth prospects of Greek banks”
The price is 4 euros
Regarding the percentage and sale price of the shares held by the HFSF in Piraeus, in another announcement the Fund notes that it has decided to sell all the shares it owns in the bank (a total of 337,599,150 shares) and at the same time to set the final sale price at 4 euros for both the international and the Greek public offering.
The “night” of the allotment
Yesterday’s night for the executives of the HFSF was difficult, since there were many exercises on paper for the distribution. According to information, there were several scenarios that occupied the decision-makers a lot, who essentially did face control on several offers submitted to the book, according to OT.
The first “set” of scenarios was the allocation of 22% of the bank. Of the 337.6 million shares, 85% of them, i.e. 275 million shares, had to be given to long only funds, with the aim of strengthening the bank’s share base, and of course to ensure that there are no turbulences along the way. In fact, as a stock market source commented to us, the entry of new codes played a role, since it creates a defense base at 4 euros, largely shielding the share price.
The remaining 41.6 million, i.e. 15% of the 22% to be made available, related to Greek codes, which will ultimately contribute around 165 million euros, from the approximately 150 million euros that were the initial estimates. The “Greek” offers, according to information, accelerated mainly in the last 6 hours of the book building process and were more economical than the previous placements, as the allocation factor was very small.
Where will the remaining 5% go?
The decision-makers were also significantly concerned with the disposal of the remaining 5%, a percentage that, although it was on the table, was decided to be given after the process started due to the huge demand that was manifested.
How much does the State put into the coffers?
In total, in the next few days, the amount of 1.35 billion euros is expected to enter the “accounts” of the Greek State from the sale of the shares of Piraeus.
The Chairman of the Board of Directors of the HFSF, Mr. Andreas Verykios, expressed his satisfaction for the successful completion: “The Financial Stability Fund expresses its particular satisfaction for the successful completion of the Public Offering of its shares in Piraeus Bank. The excellent response of the international and Greek investment public is a practical confirmation of the dynamics that the Greek economy has developed and underlines the confidence in the growth prospects of Greek banks”.
“Today’s result also vindicates the work that the Fund has done for more than a decade, with a focus on financial stability and the strength of the country’s banking system. I would like to warmly thank the Management of Piraeus Bank for the perfect cooperation all these years, as well as the HFSF team for the preparation and successful execution of this transaction”.
The Managing Director of the HFSF, Mr. Ilias Xirouhakis stated: “Today the first cycle of the strategic disinvestment of the Fund from the systemic Banks was completed with absolute success, a fact that leaves us with a profound feeling of satisfaction. The fourth in a row and in a very short period of time (less than 6 months), successful disinvestment, is a complete confirmation of the strategy and the basic choices of the Fund. The oversubscription of the participation in Piraeus Bank exceeded our most optimistic expectations (about 9 times for the international book, 4 times for the Greek book or about 8 times for the total offer)”.
“Attracting, since the start of the offering (the international book was covered on Monday, March 4th in just 6 minutes from the opening), strong interest from leading international institutional investors with quality, long-term investment funds, highlight in an emphatic way the confidence of markets in the prospects of the Greek financial system and in the stable dynamics that the Greek economy is developing. At the same time, it is an indisputable recognition, at an international level, of the Fund’s contribution to the recovery of the banking sector and to the consolidation of a strong climate of investment confidence in the country.
The admittedly impressive result of the Fund’s public offering for Piraeus Bank, seals the systematic and painstaking effort made by all sides.
For this reason, I would like to express my warm thanks to the Management – especially to the Managing Director Mr. Christos Megalou – and the staff of Piraeus Bank for the excellent cooperation with the Fund all these years, which was a decisive factor for ‘ this important achievement.
An equally big “well done and a heartfelt thank you” goes to the employees of the HFSF for the perfect preparation and execution of the transaction. Their hard work and dedication have contributed greatly to the highly successful implementation so far, not only of this particular venture but also of the entire divestment strategy.
We are particularly proud of the successful outcome of the objective of disinvestment of the Fund, which is a milestone for the national economy and demonstrates the confidence of the markets in the bright prospects of the Greek Financial System”.
The announcement of the HFSF
In accordance with the provisions of articles 17, par. 2 and 21, par. 2 of Regulation (EU) 2017/1129 and further to the announcement on 03.03.2024, regarding the availability by the Financial Stability Fund (“TFS”) of participation 22 % in the share capital of “Piraeus Financial Holdings S.A.” (“Piraeus Holdings”), corresponding to 275,080,789 existing ordinary, registered, intangible, voting shares listed on the Regulated Market of the Athens Stock Exchange, with a nominal value of €0.93 each in the share capital of Piraeus Holdings (the “Offer” ), with the right to increase the number of shares offered by up to 62,518,361 shares, at the sole discretion of the HFSF (the “Right to Option to Increase the Offer Size”), in accordance with the decisions of 03.04.2024, 03.05.2024 and 03.06.2024 of the board of directors of the HFSF: (a) the HFSF fully exercised the Option to Increase the Offer Size, i.e. increased the number of shares offered in the Offer by 62,518,361 shares and, as a result, the final number of shares offered through the Offer is 337,599,150 shares (the “Offer Shares”), and (b) the offer price for the Offer Shares, based on the results of the offer book building process conducted from March 4, 2024 to March 6, 2024 in the international offer, set within the narrowest price range of €3.90–€4.00, as publicly announced on 06.03.2024, is in line with the indicative price determination set at €4.00 as publicly announced on 06.03.2024, and set at € 4.00 per Offered Share.
The bid price applies to both the international bid and the Greek public bid.
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