EFG Group cuts its stake in Eurobank

• The shares of the Greek lender will be acquired by the Latsis family - its main shareholder

EFG Group intends to transfer 43.55% of the shares of Eurobank to nine younger members of the Latsis family (the main shareholder of the lender) and to the John S. Latsis foundation. As a result, each of them will own approximately 4.4% of the shares of Eurobank, according to an announcement made by the bank.

EFG Group currently holds 44.70% of the shares of Eurobank, and following this deal it will be left with only 1.15%.

"In the current environment, the European regulators consider that, aside from the distinction between the two groups in terms of branding (Eurobank Group - EFG Group), there is also a need to obtain a difference between the structure of the board and the accounting treatment, which will, as a result lead to a distinction in the shareholder structure", the press release says.

Following this transfer, the results of Eurobank will no longer be included in the consolidated results of the group. Also, the members of EFG Group which belong to the Board of Directors of Eurobank will resign, and viceversa.

"In the coming days, Eurobank will summon a meeting of the Board of Directors in order to elect new members of the latter", according to the press release.

Eurobank plans to continue to consolidate its position and to maintain its private lender profile of, given the recapitalization requirements imposed by the European regulators.

The parent bank of Eurobank is EFG Bank European Financial Group, controlled by the Latsis family.

EFG Group comprises EFG International (a private banking and asset management group headquartered in Zurich, Switzerland) and the parent bank EFG Bank European Financial Group (Geneva).

"With a solid base and liquidity base, Eurobank will continue to actively participate in the restructuring of the Greek banking system, to support its customers and to contribute to the recovery and financing of the Greek economy", the press release states.

In the beginning of this month, EFG Eurobank initiated arbitrage procedures to obtain compensation from Alpha Bank, due to the decision of the shareholders of Alpha Bank to cancel the merger which was agreed upon last year.

On November 15th last year, Eurobank and Alpha Bank have decided to merge, which would have made them the largest banking group in Greece.

In Romania, Eurobank owns Bancpost, and Alpha Bank operates under its own name.