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Hellenic: Main shareholders after share capital increase announced

March 15, 2019 at 10:09am
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Wargaming is Hellenic Bank’s biggest shareholder following the recent successful share capital increase of €150m. Demetra is the second largest with 18.42% and Poppy Sarl (Pimco) third with 17.30%.

In an announcement on Friday, Hellenic Bank said following the share capital increase of €150 m, the Group’s pro forma Common Equity Tier 1 ratio and Capital Adequacy ratio (both on transitional basis) are estimated at 17.8% and 20.4%, respectively, subject to the relevant regulatory approvals.

It said the share capital increase provides a number of strategic advantages including:

  • Strengthens significantly the company’s capital position following the acquisition of certain assets and liabilities of the ex -Cyprus Cooperative Bank, that has allowed the Hellenic to become the leading retail bank in Cyprus;
  • Underpins its business plan to further build its franchise and provides optionality for a faster resolution of non-performing exposures;
  • Facilitates improved access to the capital markets;
  • Enhances stakeholders’ confidence.

It said that taking into account the completion of the share capital increase, the shareholders expected to hold more than 5% of the company’s share capital are:

  • Wargaming Group Ltd 20.61%
  • Demetra Investment Public Ltd 18.42%
  • Poppy Sarl 17.30%
  • Third Point Hellenic Recovery Fund LP 12.59%
  • 7Q Financial Services Ltd   9.99%

In its announcement, Hellenic said the board had on March 14 examined and approved the allocation of 113,340,432 new ordinary shares of nominal value of €0.50 each to 2,209 shareholders that exercised 157,418,575 Rights in total, during the Rights Exercise Period, raising €79,338,302.40 of shareholders’ equity.

As per the Prospectus and in line with the subscription agreement with Demetra Investment Public Ltd , the Board has allocated the remaining 29,561,.360 New Ordinary Shares in relation to unexercised Rights to Demetra, raising an additional €20,692,952.00 of shareholders’ equity.

As per the prospectus and in line with the private placement agreement with Poppy Sarl, a company owned by investment funds controlled by Pacific Investment Management Company LLC or a related company, the Board will allocate 71,428,572 New Ordinary Shares at a price of €0.70 per New Ordinary Share to Poppy Sarl for a total consideration of €50,000,000.40. It is noted that Poppy Sarl has obtained the relevant regulatory approval for its investment.

As a result of the Rights Issue, the allocation of the unsubscribed shares to Demetra and the Private Placement, the number of issued and fully paid ordinary shares of nominal value of €0.50 each will increase from 198,474,712 to 412,805,076.

The shares arising from the share capital increase, totalling 214,330,364, are expected to be listed on the Cyprus Stock Exchange on 28 March 2019, subject to the relevant regulatory approvals.