Eurobank seals Grivalia absorption

The merger plan for the absorption of Grivalia Properties by Eurobank was approved on Friday by the general meetings of the two Athens-listed companies. This is set to lead to the capital strengthening of the credit group and the speedier reduction of its nonperforming loans.

Eurobank chief executive Fokion Karavias told shareholders that this is a "high-return merger" that is "mutually beneficial" for both companies and their shareholders.
The deal will strengthen the bank's capital base by 210 basis points, taking its pro forma capital ratio to 18.7 percent.

According to Karavias, the absorption of Grivalia will offer the group the capital boost required to proceed to a rapid decline of nonperforming exposures (NPEs) and contribute 60 million euros to the bank's results. There will also be significant benefits for the group's real estate portfolio.

The...