Hellenic Bank’s preference rights but also shares changed hands on the last day of trading which was yesterday (Thursday).
Shareholders are setting themselves either by strengthening their position or by just waiting to see, according to reliable sources which also had the Church of Cyprus yesterday selling about 2% of its shares in Hellenic Bank to Demetra Investments.
‘Demetra’ bought each share at €0.71. In essence, with this move, the former major shareholder of Hellenic reduces its holding to half of the almost 4% stake it had. Taking into account the dilution that Hellenic share will suffer from the imminent capital increase, the percentage will diminish.
‘Demetra’ has agreed to subscribe for its proportion under the Rights Issue, which amounts to 14,366,920 of new ordinary shares for €10,056,844.
To the extent that the new ordinary shares will not be acquired through the conversion of preference rights from existing shareholders or from private placement, the Bank has agreed to distribute to Demetra the number of shares needed for the investment group to hold a 20.09% stake.
Leaked information yesterday said that one of the major shareholders, Third Point, sold 35 million rights at a price of €0.018, and €12.5 million rights at the price of €0.002. This move confirms speculation that they will not exercise but sell their rights and at the same time lower their percentage in Hellenic’s share capital. According to the prospectus, their participation is at 26,20%. According to other information, part of the rights sold were purchased by 7Q Financial Services.
The crucial dates for essentially closing the €150 million capital increase for Hellenic are the following:
-Yesterday was the last day of trading of 198,474,712 preference rights in Hellenic that were granted at a ratio of 1 right for each existing share of the company.
-March 7 is the last day of exercising preference rights of Hellenic for holders registered with the Cyprus Stock Exchange which commenced on 15.2.19. Every twenty-five (25) preference rights will be converted into eighteen (18) new ordinary shares, of nominal value € 0.50 with exercise price of € 0.70 per new ordinary share.
-March 14 has been set by the Board of Directors for meeting to decide the distribution of new ordinary shares attributable to non-exercised preference rights and private placement.
-March 18 is the date the Letter of distribution of new ordinary shares of Hellenic that resulted from the exercise of preference rights and private placement will be sent out.