Piraeus Bank to buy controlling share in Shacolas’ Euroinvestment

By Jean Christou

PIRAEUS Bank Group of Greece has reached an agreement to purchase a controlling interest in the Shacolas-owned Euroinvestment and Finance Ltd.

Piraeus Bank will obtain control of 50 per cent plus one share of Euroinvestment and Finance participating in a forthcoming share capital increase.

Piraeus Bank is the fourth biggest bank in Greece and also has a controlling interest in the Bank of Macedonia-Thrace and the Bank of Chios.

Under the agreement, Piraeus Bank undertakes to use Euroinvestment as a vehicle for all its activities in Cyprus, which is seen as good news for shareholders.

Euroinvestment also has a permit for banking activities in Cyprus.

The finance company is currently 60 per cent owned by NK Shacolas (Holdings) Ltd and was set up in 1980. It was registered on the stock exchange in 1990 and its current market value is £ 45 million.

Piraeus Bank will pay £1.50 in cash for each share to be issued by Euroinvestment and Finance Ltd, and £1.50 for each share in cash to current shareholders waiving their rights.

Following the acquisition of shares by the Bank of Piraeus, the company will proceed with a further rights issue. Euroinvestment will issue 2,857, 217 shares at a part value of 0.75 cents.

The company will also split its stocks by reducing the part value to 0.50 cents from 0.75 cents so that each shareholder will get three shares in exchange of two outstanding.

Euroinvestment shares closed yesterday at £10.65, up 80 cents, trading on a volume of £2.18 million.

The Cyprus Development Bank acted as an adviser to both sides on the deal, which provides Piraeus Bank with an option to sell to Cyprus Development Bank a maximum 4.99 per cent of its total equity stake in Euroinvestment.

The acquisition of Euroinvestment means that Greece’s top four banks are now represented in Cyprus, with state-owned banks National Bank of Greece and Commercial Bank of Greece, and Alpha Bank and Piraeus Bank.

One of the conditions of the agreement is that the company will be run by senior Shacolas man Marios Savvides.

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