The approval of Attica Bank’s Share Capital Increase, totaling 735 million euros, was approved by the extraordinary general meeting of shareholders.
In particular, the Bank’s shareholders approved a Share Capital Increase of 672.1 million euros in favor of the old shareholders by paying cash and by exercising warrants for 62.9 million euros, within the framework of the provisions of the Shareholders’ Agreement between the Hellenic Financial Stability Fund and Thrivest Holding LTD as ratified by Parliament. The Bank’s goal is to have completed the share capital increase by the end of October and to start the trading of the shares from the warrants in November.
Also, the Extraordinary General Assembly approved a reverse-split so that the 53 million shares of the Bank become 530,000 by increasing the nominal value of the existing common nominal shares from 0.05 euros to 5.00 euros with a simultaneous reduction in the total number of the Bank’s existing common shares by combining one hundred shares into one (reverse split).
The Board of Shareholders voted in favor of all the items on the Agenda, including the termination of Attica Bank’s inclusion in the deferred tax credit (DTC) regime, as the universal successor of Pancreta Bank after the merger of the two institutions.
Addressing the shareholders, the Chairman of the Board of Directors of Attica Bank, Yiannis Zografakis, stated that “the legal merger of Attica Bank with Pancreta has been completed and teams from the two banks are working intensively on the operational merger. In order to create the new, unified and strong bank that we all want, the proposed capital increase of 735 million euros is needed.
The Managing Director of Attica Bank, Eleni Vrettou, emphasized that “all existing shareholders of the Bank will have the opportunity to actively participate in the new share capital increase. Based on the Shareholders’ Agreement, we are able to proceed with the necessary capital reinforcement with certainty of coverage, ensuring that our new business plan will be fully implemented.”
By the end of the year, the Bank will seek to complete the derecognition of Non-Performing Exposures (NPEs) through the “Hercules III” program, so that it is fully recapitalized and healthy by the end of 2024.
