Eurobank A.E. has unveiled its strategic plans for Hellenic Bank following its acquisition of up to 100% of the latter’s issued share capital.

The specific steps to be taken are detailed in Eurobank’s public offer document. The bank’s plans for Hellenic Bank include the continuation and development of its existing activities as follows:

First, Eurobank does not intend to immediately modify the articles of association of the acquired company. Potential changes may be considered later, provided the necessary majority is secured.

Second, Eurobank A.E. does not plan to alter Hellenic Bank’s business scope, which includes offering a wide range of banking and financial services such as financing, investment, and insurance services, custody services, and factoring.

Third, Eurobank does not intend to change the management and sale of properties acquired from debt settlements or the way and location of Hellenic Bank’s operations. However, Eurobank sees potential for expanding the Cypriot bank’s operations in certain areas, such as corporate banking and related sectors like treasury services and transactional banking. The same applies to retail banking services, where there are significant opportunities for growth in transactional banking, bancassurance, and investment services.

Additionally, Eurobank intends to "retain the assets of the acquired company for its usual business activities and does not plan to change the use of the fixed assets of the acquired company."

In the future, Eurobank may consider restructuring Hellenic Bank's activities for smoother, more efficient operations without affecting the nature of the Cypriot bank’s activities. Due to its presence in the Cypriot market through its subsidiary, Eurobank Cyprus Ltd, Eurobank A.E. "may consider merging this subsidiary with Hellenic Bank if a sufficient stake is acquired."

"Currently, the offeror does not intend to unilaterally make substantial changes to the existing employment policy of the acquired company. Following the completion of the public offer, the offeror intends to exercise its rights under the legal and institutional framework and propose the replacement of board members."

Eurobank also does not intend to grant any special benefits to the members of Hellenic Bank’s Board of Directors.

A significant aspect covered in the public offer is the payment of dividends. It states that "future General Meetings will address any Board proposals for dividend payment."

Considerations for this include:

• Relevant supervisory recommendations

• The alignment of the proposed dividend with the dividend policy of the acquired company

• Priorities that precede dividend payments, such as expanding and broadening Hellenic Bank’s operations to benefit the Cypriot economy and its clients, including investments in further technological and digital modernization.

According to the public offer, the issuance advisors are The Cyprus Investment and Securities Corporation Limited (CISCO) and AXIA Ventures Group Limited.

If, upon completion of the public offer, Eurobank A.E. acquires at least 90% of the issued share capital and voting rights of Hellenic Bank, it intends to exercise its right under Article 36 of the Law for a squeeze-out. This right allows Eurobank to acquire all remaining shares of Hellenic Bank at an equal price and in the same form as the proposed consideration.

Simultaneously, Eurobank A.E. intends to take all necessary actions to delist Hellenic Bank’s securities from the Cyprus Stock Exchange.