Attica Bank Initiates Actions for the Creation of the 5th Banking Hub
Attica Bank has started the necessary actions to implement the agreement aimed at creating the 5th banking hub. The bank has initiated procedures for the securitization of non-performing loans and the absorption of Pancreta Bank.
In particular, as stated in its update to the investing public: The Bank has commenced the securitization process of a portfolio of non-performing assets with a total book value of €2.3 billion, and the inclusion of high-priority repayment bonds in the securitization program.
μηνία έναρξης της διαδικασίας συγχώνευσης μεταξύ Attica Bank και Παγκρήτιας Τράπεζας ορίστηκε για τον επόμενο μήνα. Η Attica Bank θα απορροφήσει την Παγκρήτια Τράπεζα, σύμφωνα με τις νομικές διατάξεις που ισχύουν. Η Συγχώνευση αποτελεί σημαντικό βήμα για την ενίσχυση του χρηματοπιστωτικού τομέα στην περιοχή, προσφέροντας νέες ευκαιρίες για τους καταναλωτές και τις επιχειρήσεις. Και οι δύο τράπεζες εκφράζουν την αισιοδοξία τους για την επιτυχή ολοκλήρωση της συγχώνευσης.
Transformation Balance Sheet and Exchange Ratio Proposal
The transformation balance sheet date will be December 31, 2023, and the proposed exchange ratio will be calculated with a relative value of the merging companies distributed in a ratio of 90% for Attica Bank and 10% for Pangean Bank, following a thorough analysis and recommendation from the international independent financial organization UBS, which acts as the financial advisor to the Bank for the purposes of the merger.
The Exchange Ratio is subject to approval by the Boards of Directors of Attica Bank.
Merger and Fairness Opinion
The Pancretian Bank seeks opinion on the fairness and legality of its proposed merger from independent auditors as required by law. The completion of the merger is subject to approval from the General Assemblies of the companies involved and obtaining the necessary licenses and approvals from the relevant authorities.
The key points of the transaction and its benefits
The merger, as envisioned, aims to create a stronger and more competitive entity in the market. By combining resources and expertise, the merged entity will be better positioned to serve its customers and stakeholders. Additionally, the merger is expected to result in cost savings and operational efficiencies, ultimately benefiting both companies and their shareholders.
Benefits of the Merger for Attica Bank and its Shareholders
The merger between Attica Bank and another financial institution will result in significant benefits for the bank and its shareholders. This merger is a necessary step towards the capital strengthening of the credit institution, as outlined in the Shareholders Agreement.
It will lead to the creation of a unified financial entity with an expected CET1 ratio of less than 3%, due to the inclusion of the CET1 portfolios of the two credit institutions in the Hercules III Guarantee Scheme.
Through this merger, the aim is to create a stronger and more competitive financial institution that will be better equipped to navigate the challenges of the modern banking industry and provide enhanced services to its customers.
Increasing Competitiveness Through Integration
By focusing on the consolidation and integration of its assets, customer base, branches, and personnel, Pancretan Bank will further enhance its competitiveness against other banks. It will significantly expand its network and operations nationwide, increasing its business volume and subsequently its profitability. This will lead to achieving economies of scale in administrative expenses and overall reduction of operational costs, maximizing efficiency.
Administrative Organization of Merged Credit Institutions
The rights of the Financial Stability Fund (FSF) and the timeline for the merger are not changing. The merger is expected to be completed by mid-September 2024, pending all necessary corporate decisions of the merging credit institutions and the required licenses and approvals from the competent authorities.
Timeline for Merging Banks
The timeline for the merger of banks depends on various factors and is subject to change. The Bank will update the investment community on the implementation of all steps of the Shareholders Agreement.
