Eurobank is getting ready to 'make its mark' on Hellenic Bank

Developments related to Eurobank’s increased share in Hellenic Bank are anticipated to occur in mid-September when the shareholders will be holding their general meeting.

These developments are anticipated to include senior Eurobank management being placed at Hellenic Bank as Eurobank now holds 55.5% of Hellenic Bank’s shares.

As reported by the Cyprus News Agency (CNA), it has been informed that during the Annual General Meeting of Hellenic Bank shareholders, which is expected to take place around mid-September, Eurobank will propose the appointment of members of the Board of Directors, thus making its mark.

An indicated in the document outlining Eurobank's Public Offer to Hellenic Bank, "after the completion of the Public Offer, the Offeror intends to make use of the rights provided by the legal and institutional framework and to propose the replacement of members of the Board of Directors" and "does not intend to grant any special benefits to the members of the Board of Directors of the company under acquisition." The Public Offer ends on 30 July.

At the same time, as CNA was informed, Eurobank also intends to make its make by transferring four high-ranking executives from both Eurobank Cyprus and the wider group, to Hellenic Bank.

Due to the transfer of executives to Hellenic Bank, there may also be changes to the leadership pyramid of Eurobank Cyprus.

Although Eurobank has made it clear in the Public Offer that it does not intend to bring about changes in the scope of activity of the company under acquisition, it has given a first indication of actions to be taking, after noting that "the Offeror considers that there are possibilities to expand the operations of the company under acquisition in certain sectors, such as e.g. corporate banking and by extension in other related sectors such as treasury (portfolio) services, transaction banking," while "the same applies to private banking services where there are significant opportunities to increase the operations of the company under acquisition with transaction banking services, bancassurance and investment services."

A Eurobank Cyprus representative has not been available for comment until now.

(Source: InBusinessNews)