ATHENS—Two of Greece’s largest lenders, Alpha Bank SA and EFG Eurobank Ergasias SA, Monday announced plans for an estimated €7 billion ($10.15 billion) tie-up that would create the country’s largest bank, in a bid to address mounting problems in the Greek banking sector.
“I am confident that the new combined entity will act as an important agent for the economic development of the country,” Eurobank Chairman Efthymios Christodoulou said. “It is also well placed not only to withstand the current economic turbulence, but to create new opportunities and play a pivotal role in the future growth of the region.”
According to a joint statement, the combined entity would be among the top 25 largest banking groups in the euro zone, with pro forma total assets of €146 billion, and 2010 pre-provision income of €2.6 billion, also on a pro forma basis.
Under the terms of the deal, Eurobank shareholders will receive five new Alpha Bank ordinary shares for every seven of their own shares. The proposed exchange ratio will result in a pro forma ownership split of the new group of 57.5% by existing Alpha Bank shareholders and 42.5% by existing Eurobank EFG shareholders.
Full article available @: