EFS: All expectations were overcome by success in de-investment by the Bank Piraeus – Unique transaction in the EU with premium

Every expectation was overcome by the success of the de-investment of the Financial Stability Fund ( ) by Piraeus Bank at the disposal of 27% of it. The overcovering that occurred reached about 9 times for the international book (4 times for Greek or about 8 times for the total offer), and at a disposal price of the offered shares that was set at 4 euros per share, i.e. the maximum range of the disposal price set by the TSF. In the maximum range of the disposal price the EFSF received 10.7 billion euros bids. It is noted that the de-investment of the HFSF from its participation in Piraeus is the only European level from respective locations to attract a premium against other corresponding Europeans all allocated with a discount. For example, it is stated that the de-investment by Piraeus Bank is a third European privatisation over EUR 1 billion carried out through a Public Offer since 2017 and the first largest in Greece. It is recalled that the first largest privatisation involved the disposal of shares by the Irish government which sold a 29% stake in AIB for 3.4 billion euros, with a 43% discount on the disposal price, while until recently the second largest European privatisation was the disposal of the 22% stake held by the HFSF to the National Bank for around 1.1 billion euros, even achieved by minimising the discount on the disposal price, at 2.57%. National Economy & Finance Minister Kostis Hatzidakis said that the success of the 27 % of Piraeus Bank’s shares in foreign and Greek investors has no precedent. “It is not only that the investment interest expressed was 8 times greater than the offer. There are also the prices offered. It is indicative that the exposure price of the shares was set at levels higher than the closing price of the Stock Exchange last Friday, before the start of the procedure. Which is extremely rare worldwide as in such cases of mass stock disposal prices are almost always shaped with a discount for buyers,” he stressed. The Managing Director of the TCS, Ilias Xerouchakis, mentioned a landmark transaction, overcovering the disposal of the TSF’s participation in Piraeus Bank that overstood the Fund’s most optimistic expectations, and as the Fund’s fourth successful de-investment, within less than 6 months, confirms the TSF’s strategy. In addition, it is noted that the EFSI emphasised the assessment of potential investors. Priority was given to meeting requests from recognised financial institutions and investors, aiming to attract long-term partners, ready to support Piraeus Bank’s development course. The total value of the transaction reaches 1.35 billion euros. For his part, the Chairman of the Board of Directors, Andreas Verikios, stated that the excellent response of the international and Greek investment public to the deinvestment of the TSS by Piraeus Bank, is an active confirmation of the dynamics developed by the Greek economy and underlines the confidence in the prospects for the development of Greek banks.

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