ATHENS (Reuters) – Attica Bank shareholders approved on Tuesday the bank’s deal to merge with the smaller Pancretan Bank in an effort to clean up its balance sheet and create a new banking organisation, the bank said in a bourse filling.
The agreement is part of a wider re-privatisation of Greek banks bailed out during a decade-long debt crisis.
The deal includes a capital increase of 735 million euros ($801.89 million), to cover the capital needs of the new bank and reduce its non-performing loan exposure to 3% of its total loan portfolio, said Eleni Vrettou CEO of Attica during a speech to shareholders.
Attica Bank, with market capitalization of 500 million euros, has a network of about 40 branches, assets of about 4 billion euros and a Non Performing Exposure ratio of 54% on its total loan book, the highest among Greek banks.
The state controlled bailout fund, the Hellenic Financial Stability Fund (HFSF), currently owns 72.5% of Attica, with Pancretan holding 5% and Thrivest Holding 4.4%.
After the capital increase, the HFSF’s stake in the new entity will be 35% and Thrivest’s stake between 50% and 58.5%.
Thrivest Holding is the main shareholder of Pancretan Bank.
(Reporting by Lefteris Papadimas; Editing by Alexandra Hudson)
