Commencement of a demerger process by way of hive–down of the banking activity sector and its contribution into the incorporation of a new banking entity
Piraeus Bank S.A. announces that its Board of Directors resolved on July 23th, 2020 to commence a demerger process by way of hive–down of the banking activity sector of the Bank (hereinafter the “Demerged Entity”) and its contribution into a new banking entity to be incorporated (hereinafter the ”Beneficiary”), pursuant to the provisions of article 16 of L. 2515/1997 and articles 57 (3) & 59-74 of L. 4601/2019 (hereinafter the “Demerger”).
In particular, the Bank’s Board of Directors resolved the following:
The Demerger will be effected through the spin–off of the banking activity sector of the Bank and the contribution of said sector to the Beneficiary, which will be licensed as a credit institution and shall be a wholly owned subsidiary of the Demerged Entity.
Upon completion of the Demerger, the Demerged Entity will retain certain assets, liabilities and non-banking activities, will cease to be a credit institution, while its shares will remain listed on the Athens Stock Exchange.
The Bank’s Board of Directors has designated July 31st 2020 as the Transformation Balance Sheet date for the Demerger. All actions or transactions concerning the hived-down banking sector which will be effected by the Demerged Entity following the Transformation Balance Sheet date, shall be deemed to have been conducted for the account of the Beneficiary.
Following completion of the Demerger the special rights enjoyed by the Hellenic Financial Stability Fund shall apply towards the Beneficiary as well, in compliance with the provisions of Law 3864/2010, as in force.
Completion of the Demerger is subject to approval by the Bank’s Board of Directors and General Meeting of Shareholders, as well as to the receipt of all required approvals by the competent authorities pursuant to applicable law and by the Hellenic Financial Stability Fund.
Piraeus Bank will update investors on the progress of the Demerger process, in accordance with the applicable legislative and regulatory framework.
Athens, 24 July 2020