LAST UPDATE: 13.19
By Leonidas Stergiou
The privatization of Attica Bank, in two phases, was decided by the HFSF and the TMEDE-Ellington scheme, confirming the publication of Capital.gr at the end of October about the difficulties of the negotiations and the solution for AMK in two installments. Also, the publication of Capital.gr for the participation percentages of the HFSF and the TMEDE Ellington consortium in the first phase is confirmed.
According to today’s announcement, the HFSF and the TMEDE-Ellington consortium agreed, in principle, on the following:
First, the HFSF will take part in the increase of 240 million euros, participating with 153.8 million euros, a fact that limits its percentage to around 63-64% from the current 68%.
Second, TMEDE, which is the current private shareholder with a percentage of 14.7%, will participate together with Ellington with 62 million euros. This participation raises the current percentage to 25%.
Third, EFKA participates with its percentage (10%), ie with 24 million euros.
Fourth, within a quarter and if the shareholders will now have a better picture of possible new needs, mainly from the securitization of loans through Hercules, they will proceed within three months, until March 31, 2022, to a new capital increase. Then, TMEDE-Ellington will increase its percentage to 68%, ie at the level currently held by the HFSF.
The amount is not mentioned in the announcement, as this is the unknown X that did not allow the emergence of a private investor with the current share capital increase. However, according to information from Capital.gr, sources familiar with the discussions, the new needs were estimated during the negotiation phase from 100 million to 170 million euros. If these estimates and information are confirmed, then they will proceed to a new capital increase, by March 31, 2022 at the latest, where the private TMEDE-Ellington scheme will acquire a strategic percentage.
As for the technical part, the agreement stipulates that this second investment consists of a share capital increase, with or without a preference for old shareholders (henceforth it will be called a second increase), and possibly a “Third Capital Contribution” (ie a second increase with capital injection). In particular, the Third Capital Contribution will be structured either as a third share capital increase, or as a issuance by the Bank of warrants or any other alternative financial instrument, such as a convertible bond loan, which will be agreed upon. The amount of the Second Increase and the Third Capital Contribution (as required), as well as the number of new shares to be issued for each of the Parties will be based on an adjustment mechanism in proportion to the exact size of the provisions to be made. to be accounted for in relation to the total exposures of the Bank as a result
(a) the conduct of the Due Diligence Exercise;
(b) of any Hercules Program Evaluation and
(c) the deductible effect on the shareholders’ participation in the Bank’s capital due to any conversion of deferred tax assets (DTC) that may occur between the Second Increase and the Third Capital Contribution.
Each of the TMEDE and Ellington undertakes the obligation to participate in the Second Investment equally (pari passu). In the event that one of the two does not invest all or part of the amount that he has committed to invest, the other undertakes to invest this amount.
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Source From: Capital

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