Piraeus Bank on Monday announced a unanimous board decision to seek a share capital increase plan, worth 807,054,045 euros in cash.
Under the plan, the bank will issue 807,054,045 new common nominal shares at an offering price of 1.0 euro per new share to be offered at a ratio of 12 to five to existing shareholders. The bank said the offer price represents a 43 percent discount on its fair price -excluding rights- based on closing prices of Monday 3, January 2011.
The plan is expected to be completed by the end of January and the new shares will begin trading in the Athens Stock Exchange by mid-February. Following completion of the share increase plan, the bank’s total number of common nominal shares will be 1,143,326,564.
The plan is fully covered by a consortium of international financial firms, headed by Barclays Bank Plc, Credit Suisse Securities (Europe) Ltd, Goldman Sachs International and Morgan Stanley and Co Intl Plc, acting together as international coordinators and managers for the international offering.
The plan is also supported by ING Bank NV, Keefe, Bruyette and Woods Ltd, Macquarie Capital (Europe) Ltd, Mediobanca-Bance di Credito Finanziario SpA and MPS Capital Services SpA, who will act as co-managers.
Commenting on the plan, Mihalis Sallas, chairman of the bank, said Piraeus Bank aims to further strengthen its capital base amid a difficult economic situation and to create the necessary conditions in order to benefit from a gradual recovery of countries in which Piraeus Bank has established activities. “I have to underline also that we are very satisfied with the strong support offered by our main shareholders to the plan,” he added.
(ANA)
