The Hellenic Financial Stability Fund (HFSF) will reportedly proceed with the disposal of the 27% it holds in Piraeus Bank’s share capital, following a recent government meeting.
After a series of reports on the rate to be privatized and the price, the state seems to proceed with the sale of the entire percentage it holds in Piraeus Bank, i.e. 27% of the bank’s share capital. The news is expected to be confirmed by the Fund’s adviser, BofA.
However, details are not expected to be revealed before the closing of the European and US stock markets at the end of the week. Therefore, announcements are expected from next Friday night until Monday morning, when the prospectus with all the details of the issue will be approved and posted by the Capital Market Commission. The reason the proceedings are so confidential is that there are provisions for very high compensation in case the information affects the share price and demand for the bank’s shares.
The book building process will open on March 4 and the issue will close on March 6. The distribution in terms of private and institutional investors will likely follow the model of the National Bank and it is not expected to exceed 10-15% of the issue.
According to analysts, the price discount will range between 5%- 10%, but it will also depend on the percentage of shares to be allocated.
