Fair­fax to raise its stake in Eurobank Properties

Kathimerini English - - Front Page -

Cana­dian in­vest­ment firm Fair­fax Fi­nan­cial Hold­ings will raise its stake in Greek real es­tate firm Eurobank Properties to 42 per­cent from 19 per­cent, par­ent Eurobank said yes­ter­day. Fair­fax and Eurobank aim to strengthen their re­la­tion­ship as share-

OPAP’s board held an emer­gency meet­ing yes­ter­day and re­port­edly ap­proved the deal with In­tralot for the sup­ply by the lat­ter of tech­no­log­i­cal equip­ment. The deal has in­cited the wrath of Emma Delta, the con­sor­tium which has won the ten­der for the ac­qui­si­tion of a con­trol­ling stake in the OPAP gam­ing com­pany. hold­ers of Eurobank Properties and boost its re­sources to make it a lead­ing player in the coun­try’s real es­tate mar­ket. Un­der the deal, Eurobank Properties will pro­ceed with a rights of­fer­ing of about 200 mil­lion eu­ros at 4.80 eu­ros a share, with Fair­fax ex­er­cis­ing its own rights and pur­chas­ing Eurobank’s rights for 20 mil­lion eu­ros. Af­ter the cap­i­tal in­crease Eurobank will hold about 33.5 per­cent in the real es­tate firm pro­vided all other share­hold­ers ex­er­cise their rights. “The Greek peo­ple have worked through tremen­dous hard­ship but we think the light is now vis­i­ble at the end of the tun­nel,” Prem Watsa, chair­man and CEO of Fair­fax, said in a state­ment, re­fer­ring to the coun­try’s eco­nomic cri­sis. Eurobank Properties has a cur­rent mar­ket cap­i­tal­iza­tion of 406 mil­lion eu­ros. Fair­fax will pump in about 164 mil­lion through the rights of­fer­ing. As part of the deal, the two sides will agree that Eurobank will re­tain man­age­ment con­trol at Eurobank Proper- ties un­til June 2020, with Fair­fax rep­re­sented at the firm’s board with cus­tom­ary veto rights. Eurobank, Greece’s fourth­largest lender, opted to be fully re­cap­i­tal­ized by a state bank res­cue fund to plug a 5.84-bil­lion-euro cap­i­tal hole af­ter losses on sov­er­eign debt write­downs and bad loans. It has fallen un­der the full con­trol of the Hel­lenic Fi­nan­cial Sta­bil­ity Fund. Ear­lier this year, Fair­fax had ex­pressed in­ter­est in tak­ing part in National Bank’s re­cap­i­tal­iza­tion but a deal did not ma­te­ri­al­ize as the fund’s con­di­tions could not be met.

Cap­i­tal con­trols.

The euro area’s first re­stric­tions on the move­ment of cap­i­tal are do­ing more dam­age to Cyprus’s econ­omy than a one-time levy on sav­ings, and must be lifted as soon as pos­si­ble, the is­land’s Com­merce, Tourism and In­dus­try Min­is­ter Ge­orge Lakkotrypis said yes­ter­day.

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