Trading on the Cyprus Stock Exchange of Hellenic Bank’s nil-paid rights commences today (Friday) and ends on February 28 with interested investors in the share capital of the island’s second biggest lender getting set for a fight.
Wheeling and dealing has already begun between those who choose not to take up their rights and those who want to acquire or strengthen their position in the equity structure of the bank.
The balance of power in the bank is expected to change after the imminent capital increase, but it is not yet clear how. In addition to Pimco’s given entrance with a percentage exceeding 17%, changes will also come from the exercise of pre-emptive rights.
From information made public so far, Demetra Investments will seek to strengthen its position by acquiring preference rights from the floor or possibly shares that may be put up for sale.
And Emma Alpha, which may not have bank shares at this stage but have expressed interest and reached an agreement to acquire any unallocated shares, are also making moves. Emma Alpha are eyeing a significant stake in the bank and are conducting behind the scenes negotiations to buy pre-emptive rights packages.