HB lists 87m new shares, opts for stock split

Financial Mirror (Cyprus) - - FRONT PAGE -

Hel­lenic Bank, the re­cently re­cap­i­talised lender that boasts Daniel Loeb’s Third Point Hel­lenic Re­cov­ery Fund and on­line game de­vel­op­ers Wargam­ing.net among its ma­jor share­hold­ers, has de­cided to pro­ceed with a 50:1 re­verse stock split, re­duc­ing the num­ber of shares listed on the Cyprus Stock Ex­change from 9.4 bln shares to 187 mln.

Tra­di­tion­ally the is­land’s third big­gest lender, prior to the col­lapse of Laiki Popular Bank in 2013, Hel­lenic has trans­formed it­self from a con­ser­va­tive bank to “a very dif­fer­ent and stronger bank with ro­bust cap­i­tal base and liq­uid­ity”, us­ing its own words.

The board de­cided on Mon­day to re­struc­ture the share cap­i­tal of the bank through a re­verse stock split, as well as a re­mu­ner­a­tion pack­age for ex­ec­u­tive of­fi­cers, in­clud­ing CEO Bert Pi­jls. Only last week, the bank listed 87.4 mln new shares that emerged from the un­ex­er­cised rights which had not been cov­ered by the is­sue last Novem­ber, that wil prob­a­bly be used as part of the share re­mu­ner­a­tion scheme.

In all, the bank raised a fur­ther 204 mln eu­ros from its re­cent cap­i­tal share in­crease, cov­er­ing 92% of the tar­get set, in ad­di­tion to the 100 mln raised from Third Point, Wargam­ing and lo­cal in­vest­ment fund Deme­tra in early 2014 that res­cued the bank from a state-spon­sored bailout or bailin of de­pos­i­tors. With the com­ple­tion of its share cap­i­tal in­crease, the bank’s Com­mon Eq­uity Tier 1 ra­tio presently stands at 12.8%.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.