The government aims to zero out the participation of the State in the equity capital of the systemic groups until next autumn.
The beginning will be made with Piraeus Bank and the disposal of all the shares (27%) held by the Financial Stability Fund (HFS), to be followed from June by the sale of 18% of National Bank.
Banking sources say the conditions are right for a definitive end to state involvement in the financial system, marking a full return to normality.
According to the same sources, the favorable situation internationally in the markets, as well as the strong demand recorded from abroad for Greek assets, create the appropriate environment for the liquidation on the best possible terms of the HFSF share packages, reports ot.gr.
The movements
It is recalled that the Eurobank became the first purely private bank, with the repurchase of the State’s participation (1.8%) in October 2023.
It was followed at the beginning of last November by Alpha Bankfollowing its agreement with UniCredit, which acquired 9% of its share capital, which was held by the HFSF.
A few weeks later the disposal of its 22% was completed National Bank through placement, which gathered the interest of long-term and quality funds.
It’s her turn at the beginning of March Piraeus Bank, with the HFSF having in all probability all of its shares in the systemic group (27%).
It is noted that the alternative concerns the disposal of a percentage of 20% – 22% and the sale of the remaining 5% – 7% in a second year, in order to increase the total price for the state.
The decision is locked
However, it has reportedly been locked the definitive withdrawal of the State from Piraeus in one installment. “What sense does it make for a few million euros for the government to wait a few months and not finish the job today for sure?”, asks an analyst who follows the sector.
He notes that “right now and until the US elections next November, there is a wide window of opportunity to mark the formal end of the crisis in the banking sector, with the full return of the system to the private sector”. He adds that in this way all the big four in the sector will move at the same speed.
“It is not possible for two banks to have been privatized and for the other two to still be owned by the public, with all that this entails in their corporate governance and their attractiveness as investment options,” he emphasizes.
The case of Ethniki
With these data, after the sale of 27% of Piraeus, the rapid sale of 18% of National Bank will follow.
It is recalled that in the case of the second, the HFSF has committed not to sell any more shares until the end of May. Therefore, from June, the way will be opened for the withdrawal of the state from its share capital.
The management of National Bank would like a part of these shares, up to 8%, to be repurchased, as a measure to reward its shareholders. However, such a move is subject to supervisor approval.
With today’s data, however, even if the path of fully selling the public participation to private investors is chosen, the venture will be crowned with success.
And this is because the bank, like the other systemic groups, is in a position to register significant profits in the next three years.
The market got a taste of their prospects after Piraeus Bank released its 2023 results and business plan for the period 2024 – 2026 last week.
Eurobank and Alpha Bank will follow on March 7 and National Bank on March 12.
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