Alpha Bank’s Divestment Strategy: 9.84% Stake in Thessaloniki Water Supply & Sewerage Co. Up for Sale

Alpha Bank’s Divestment Strategy: 9.84% Stake in Thessaloniki Water Supply & Sewerage Co. Up for Sale

Alpha Bank’s Divestment Proposal

Alpha Bank, one of Greece’s largest banking institutions, has proposed the immediate sale of its 9.84% stake in Thessaloniki Water Supply & Sewerage Co. S.A. (EYATH). EYATH, a strategic entity in the Greek infrastructure sector, is primarily responsible for water supply and sewerage services in the Thessaloniki area. This proposal was submitted to the Hellenic Corporation of Assets & Participations S.A. (HCAP).

Shift in Strategy

The decision to put this stake up for sale comes as part of Alpha Bank’s strategy to concentrate more on its core banking operations. The bank has decided to divest this considerable stake in EYATH as part of its broader plan to reduce its non-core assets.

Attracting Interest

The sale of Alpha Bank’s stake in EYATH is expected to attract substantial interest from potential buyers. This is attributed to EYATH’s robust financial performance and its strategic importance in the water supply and sewerage sector in Greece. The proposed sale also aligns with the Greek government’s ongoing privatization program, signaling a positive economic trajectory for the nation.

Greek Government’s Stake

The article notes that the Greek state, through the Hellenic Republic Asset Development Fund (HRADF), owns a majority stake in EYATH. HRADF’s primary role is to maximize the proceeds from the utilization of the Greek state’s assets, which aligns with Alpha Bank’s proposed sale.

The Decision-Making Process

The proposal will be reviewed by HCAP’s Board of Directors during their next meeting. If approved, the sale process will be conducted in accordance with applicable laws and regulations, ensuring transparency and equal treatment of all participants.

Implications of the Sale

In conclusion, Alpha Bank’s strategic decision to propose the sale of its 9.84% stake in EYATH to HCAP indicates the bank’s intent to focus on its primary banking operations and reduce non-core assets. The proposed sale is expected to generate significant interest due to EYATH’s strong financial performance and strategic importance. The decision now lies with HCAP’s Board of Directors who will review the proposal in their upcoming meeting.