Eurobank to absorb Grivalia Properties

The planned merger between the Eurobank Group and Grivalia Properties that was announced on Monday is aimed at the full streamlining of Greece's third-largest lender through the drastic reduction of its portfolio of nonperforming exposures from 39 percent of all loans at end-September to 15 percent at end-2019 and below 10 percent in 2021.

Eurobank chief executive Fokion Karavias stated yesterday that "having dealt with the issue of NPEs, the bank will be able to focus on its return to growth and the support of economic activity in Greece and Southeastern Europe."

Grivalia Properties, the 20 percent Eurobank-owned affiliate formerly known as Eurobank Properties, is one of the Greek stock market's blue chips and will be delisted upon the merger's completion.

The share swap planned will have a ratio of 15.83 new common shares of Eurobank for each common share of...