In­vestors ex­er­cise only a frac­tion of NBG war­rants

Kathimerini English - - Front Page -

In­vestors ex­er­cised only a frac­tion of Na­tional Bank’s war­rants to buy shares in Greece’s largest lender from the coun­try’s bank res­cue fund be­cause the cur­rent share price was too low. As part of Greece’s 240-bil­lion-euro in­ter­na­tional bailout, its top four banks, in­clud­ing Na­tional Bank, were re­cap­i­tal­ized mainly by the Hel­lenic Fi­nan­cial Sta­bil­ity Fund (HFSF) af­ter losses from a sov­er­eign debt write­down and bad loans. In­vestors who took part in Na­tional Bank’s re­cap­i­tal­iza­tion were given war­rants as an in­cen­tive. Th­ese give hold­ers the right to buy Na­tional Bank shares from the HFSF at a set price, known as the strike price. How­ever, with Na­tional Bank’s shares trad­ing be­low the 4.37 eu­ros per share strike price, in­vestors ex­er­cised only 31,046 war­rants out of an out­stand­ing to­tal of 245.7 mil­lion in the first ex­er­cise pe­riod, the bank said on Tues­day. That means they will buy 255,410 Na­tional Bank shares from the HFSF, which owns about 84 per­cent of the bank. The trans­ac­tion will re­sult in pro­ceeds of 1.1 mil­lion eu­ros for the HFSF and in­crease the amount of Na­tional Bank shares avail­able to be traded by 0.011 per­cent.

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