Alpha Eurobank merger approved

Newsroom 16/11/2011 | 16:42

The general assembly of Eurobank EFG shareholders, present in Romania through Bancpost, has agreed today, with a 98 percent approval rate, to merge with Alpha Bank. The newly formed bank will act under the Alpha Eurobank name.

“The newly formed bank will become the 23rd largest banking institution in the euro area with total assets worth EUR 145 billion, loans amounting to EUR 98 billion and deposits totaling EUR 68 billion. It will have 2300 banking units and 34.000 employees”, stated Nicholas Nanopoulus, CEO, Eurobank EFG, following the approval of the merger process. Nanopoulus added that the newly formed Alpha Eurobank will deliver synergies worth EUR 650 million that will be fully achieved in the following three years. The new bank will keep using private sources and markets as capital sources.

The shareholders’ meeting gathered 57.3 percent of the share capital, which accounts for approximately 317 million ordinary shares. EFG shareholders approved the absorption of the bank by Alpha Bank. This took place through a fusion act that saw 7 Eurobank shares exchanged for 5 newly issued Alpha Bank shares, and 1 newly issued Alpha Eurobank share for every Alpha owned share. The total number of shares that accounts for the valid votes reached 310.999.283.

In the following weeks, the newly formed bank will have to obtain approvals from Greek banking, governmental and competition authorities.

After these approvals will have been obtained, Eruobank shares will be removed from trading on the Athena Stock Exchange, and will be replaced with newly issued Alpha Bank shares within one week.