Eurobank Ergasias Services and Holdings SA submitted an official request to buy back the Greek state’s 1.4% stake in the lender for €1.80 euros a share.

The lender requested the buy back from the Hellenic Financial Stability Fund, a bank recapitalization tool that was established at the start of the Greece’s bailout programs, offering just over €93.7 million for the stake, according to Bloomberg calculations. 

The fund has already started its plan to divest from the country’s lenders and Eurobank is the first bank in the process.

The bank entered into a conditional share purchase agreement with HFSF to acquire all of its issued shares held by HFSF, both parties said in statements.

According to the deal, the HFSF will launch a disposal process open to eligible investors and the sale and transfer of the shares to Eurobank is subject to “the non-selection by HFSF of a preferred bidder through the competitive process,” both sides said. 

The HFSF currently also holds a 40% stake in National Bank of Greece SA, 27% of Piraeus Bank SA and 9% of Alpha Bank SA.

Original Story: BNN Bloomberg |Sotiris Nikas 
Photo: Eurobank website
Edition: Prime Yield