Bankinter: The Financial Stability Fund (HFSF) is selling 10.0% of NBG’s capital for €690m, equivalent to a price of €7.55/share. The 8.4% that the HFSF still holds in the bank will be transferred to the Greek sovereign wealth fund.
Analysis team’s view: This is good news because it confirms investor interest in the sector, especially for the entities listed at the most attractive valuation multiples. For reference, NGB trades at a P/E ratio of ~5.7x 2024 (vs 7.0x Europe average) and a P/CV of ~0.85x (range 0.8/1.4x in EMU). NBG is the second largest Greek bank by market capitalisation (€7,012m) and the sale price is in line with the initially expected range (€7.3/7.95/share). The most important aspect of the transaction is that it was carried out at a discount of just 2.0% on yesterday’s closing price, with a demand that exceeded 12 times the offer.
