The Financial Stability Fund (FSF) has announced the completion of the renewal process of the Systemic Banks’ Strategic Divestment, which was drawn up within the framework of the law (3864/2010), agreed with the parties involved and approved by the Ministry of Finance.

The main points of the Selling Strategy are detailed here.

As Money Review wrote, the strategy distinguishes between two main forms of selling shares:

• a process through the capital market that provides alternative paths (accelerated book creation, full market offer, dribbling, etc.) or a combination of both
• private sale, which facilitates the sale of large blocks of shares – more than 5% – or the direct sale of all shares held by the Fund to the bank.

The investment reduction strategy is in line with the principles defined in the HFSF legal framework and all relevant legal and regulatory provisions. The law emphasizes divestment as the central option of HFSF, as important as its core mission of maintaining the stability of the banking system in the public interest, and sets its completion horizon at the end of 2025, which is the end date. activities of the Foundation.

The Fund is fully committed to its efforts to dispose of its assets in systemically important banks prior to their expiration in an orderly manner consistent with maintaining financial stability while ensuring their fair value.

The sale of shares in any of the Greek systemic banks is fully in line with HFSF’s mission of financial stability and reflects the progress of the banking sector in terms of addressing past shortcomings and achieving continued operating profitability.

The disinvestment of the Fund’s assets will provide broader benefits to the Greek economy and public interest, further enhancing the liquidity and efficiency of the Greek capital market and helping to provide more opportunities for direct investment in the Greek banking sector, which is being modernized, allowing further development in full private ownership.

HFSF will identify opportunities to implement well-planned transactions in the most profitable way, always in accordance with applicable law. It will take the same initiatives, but at the same time will consider any investor approaches and proposals that banks may present.

Before deciding to sell shares, HFSF will review its commitment to financial stability as well as ensuring the fair value of its assets. In any case, a transparent and competitive process will be followed while maintaining due confidentiality.

Basic principles

The strategy clearly defines the main principles that guide the sales process:

1. Clarity of purpose within a clear and concise strategy that sets the overall parameters for individual trades.
2. Transparency of strategy by communicating clear strategic objectives to stakeholders.
3. High standards of work in compliance with best practices that are fully compatible with the current regulatory framework.
4. A transparent and competitive process that provides for all types of transactions that bona fide investors will be confident that they will be treated in a transparent and impartial manner. HFSF will not engage in bilateral negotiations or deals that do not include a competitive process, the timing of which will be announced at the start of the deal.

During the divestment process, HFSF will seek to increase the value of its portfolio, although the design, structure, process and execution of individual transactions will be adapted to market conditions and banking activities.

HFSF will not fix a specific timing or sequence of transactions within the overall three-year sale scheme so as not to burden the commercial value of its portfolio. In addition, it does not consider individual transactions as a benchmark for subsequent transactions to be designed and executed in light of the prevailing conditions at the time.

Chairman of the HFSF Board of Directors, Andreas Verikios, stated: “The withdrawal of investments is a particularly important and complex process, which will be carried out with full respect for the principles of transparency and efficiency for the benefit of the Greek economy. The Fund will be asked to make decisions weighing speed and cost-effectiveness in the face of uncertainty. The fact that the parties involved have agreed on a sale strategy ensures that the project is carried out with confidence and an unwavering commitment to the public interest.”

HFSF Managing Director Elias E. Xirouhakis made the following comment: “The publication of the HFSF divestment strategy is an important milestone in a long series of major challenges that the Fund has successfully addressed over time. We are especially proud and optimistic because, despite the difficulties of the current situation, the Greek systemic banks have significantly improved their performance and are considered ready for dynamic development in the coming years for the benefit of their shareholders, the public interest, the further development of our national economy and, of course, financial stability.”

Source: moneyreview.gr