Piraeus Bank in Exclusive Talks to Acquire 70% Stake in Ethniki Insurance

Piraeus Bank, one of Greece’s four largest financial institutions, announced on Thursday that it is in exclusive negotiations with CVC Capital Partners to acquire a 70% stake in Ethniki Insurance. The deal, valued at €469 million ($485.84 million), is aimed at boosting Piraeus’ fee revenue from around 20% to 30%, according to CEO Christos Megalou.

“We have agreed to move forward with exclusive discussions regarding the potential acquisition of a 70% share in Ethniki Insurance for €469 million,” Piraeus stated in a filing to the stock exchange.

CVC Capital Partners, which manages assets worth €191 billion, acquired a 90% stake in Ethniki Insurance from the National Bank of Greece in 2021.

Having weathered a financial crisis and subsequent nationalization following Greece’s 2009 financial meltdown, Greek banks have now returned to normal operations. After reducing bad loan ratios and returning to profitability, these banks received approval from the European Central Bank last year to resume dividend payments for the first time in 16 years.

Piraeus Bank, fully privatised in 2024, is forecasting a net profit of €1 billion for 2024, with plans to distribute 35% of its profit to shareholders. The bank has hired UBS as a financial advisor and Milliman as an actuarial consultant for the Ethniki Insurance transaction.

Source: pagenews.gr