Wargaming, the renowned video game company, has agreed to sell its entire ownership stake in the Hellenic Bank to Eurobank. The deal is valued at €65.9 million, breaking down to €2.35 per share. This ownership interest equates to 6.8% of the Hellenic Bank's total shares, or 28,023,767 shares in numerical terms.

The final transaction value may be subject to adjustments. According to a statement from Wargaming, the sale price could be modified depending on variables such as the closing date of the transaction. Furthermore, Eurobank will need to make a subsequent public offer if its ownership in the Hellenic Bank exceeds a 30% threshold.

In a parallel development, pension funds managed by Wargaming's senior leadership have also committed to selling their stakes in the Hellenic Bank. They hold a 0.4% share, or 1,686,245 shares, and will sell their holdings for a total of €4 million, maintaining the same per-share price of €2.35.

Both deals are pending regulatory approval from relevant financial authorities and will be finalized once all conditions are met. Until that time, Wargaming and the associated pension funds will retain complete legal ownership of the shares they intend to sell, along with all the incumbent rights.

With regulatory approval secured for its agreements with Wargaming and other recent deals, Eurobank will increase its stake in Hellenic to 55.3%, effectively giving it full control of the company.

Wargaming clarified the reasoning behind its initial investment in the Hellenic Bank, stating it aimed to bolster the Cypriot economy and contribute to the creation of a financially stable banking institution. According to the company, these goals have been fully realized. The sale to Eurobank is seen as a positive step, with Wargaming describing Eurobank as a "reliable counterparty" capable of adding value to the Hellenic Bank.

It's worth noting that Wargaming’s total investment in the Hellenic Bank had reached €127 million. The company had been an active participant since 2013 in the bank's capital-raising efforts. At that time, amidst an economic crisis, the Hellenic Bank was the only financial institution in Cyprus to satisfy its capital requirements through private investment, without relying on state support or implementing deposit cuts.

According the the company, Wargaming has been consistently supportive of the Hellenic Bank's capital increases for the past decade, underscoring its long-term commitment to the financial institution and, by extension, the Cypriot economy.

The sale to Eurobank marks a significant chapter in Wargaming's ongoing business strategy, while also signaling potential shifts in the landscape of the Cypriot banking sector.