JP Morgan has reportedly received the green light from the Hellenic Financial Stability Fund (HFSF) to hold talks with the interested parties in order to have the list with the funds to participate in the placement for up to 18.4% to the National Bank ready by next week.
“Next week will be critical for the placement,” Naftemporiki’s sources explained, as the HFSF will have specific data – amount of potential investment and offer price – which will then be evaluated by the shareholder’s board of directors in order to receive relevant decisions.
Book building process
Next – and last – step of the process is the opening of the offers in the week of completion of the transaction.
According to the previous experience from the placements of the HFSF, the decision is taken on Sunday by the Board of Directors of the Fund, the offers open on Monday and the procedure closes on Thursday. On Thursday evening, decisions are taken on the final allocation percentage – based on the data of the offers – and the distribution of the shares is formed accordingly.
According to sources, at the same time the management of the National Bank is holding informative roadshows to large investment funds and pension funds and other institutional investors in order to inform the investment community regarding the bank’s next steps, the transformation of its operating model, its profitability and other parameters affecting the interest of potential investors.
The exact percentage that the HFSF will allocate to the upcoming placement remains unknown, as opinions seem to differ within the government on whether the State should maintain a percentage between 5% and 8% in the last systemic bank in which it maintains a presence. According to secure information from “Naftemporiki”, the opinion is strongly expressed in favor of maintaining a share in National Bank with the aim of transferring it to the Hellenic Investment Fund in 2025, which has been announced by the Minister of National Economy & Finance, Kostis Hatzidakis, for the restructuring of the Superfund.
The State could retain this percentage to make it available to a strategic investor who may express interest in the following year, as happened in the case of the Alpha Bank – Unicredit strategic alliance. Of course, this requires special planning and favorable timing, and it is not at all certain that the pattern of Alpha can be reproduced as the divestment strategy was implemented on a completely different basis.
On the other hand, reservations were expressed on the part of the shareholder as to whether the moment of the divestment is optimal if one considers that the price of the share of the National Bank is consistently below 8 euros (since August 27). “I see no reason to rush into selling the stake [in NBG] when the stock has come under such pressure and not to wait for it to come back above 8 euros”, competent sources reported to “Naftemporiki”.
