National Bank of Greece (NBG) has made a voluntary proposal to purchase all the outstanding ordinary registered shares, with a par value of €2.22 per share, issued by Eurobank Ergasias.
Around 58 new shares will be offered for every 100 shares of Eurobank, with 43.6% of the latter’s shareholders already agreeing to tender their shares, NBG said.
NBG CEO Alexandros Tourkolias said, "With this Tender Offer, NBG accelerates the consolidation currently underway in the Greek banking system, creating a long term viable institution that can withstand the challenges that Greece is undergoing and at the same time create significant value to the shareholders of both banks."
"The support of certain key shareholders of Eurobank provides strong momentum to our Tender Offer; we are confident that the Board of Eurobank will also recognise the value creating nature of our Tender Offer and recommend the transaction to Eurobank’s shareholders."
Upon completion of the tender offer, merger between the two parties will be initiated and the new entity would be called NBG Group with combined assets of €177.7bn ($230.2bn) and deposits of €87.9bn.
Credit Suisse Securities (Europe) is acting as financial advisor to the acquirer for the offer and subsequent merger.