Italian banking group UniCredit has entered into financial instruments with primary investment banks for the acquisition of an additional 9.7% stake in Greece-based Alpha Services and Holdings, which is the parent company of the Alpha Bank Group.
Alpha Bank Group offers a variety of financial products and services in both domestic and international markets.
Go deeper with GlobalData
The transaction price reflects a discount compared to Alpha’s previous closing share price, stated UniCredit.
The physical settlement of these instruments is contingent upon obtaining the necessary regulatory approvals.
Along the 9.6% currently held, UniCredit’s overall positions in Alpha will total around 20%, enabling to equity consolidate and therefore “better reflect the positive contribution of the strategic partnership”, stated UniCredit.
The bank plans to file the required regulatory documentation to secure a stake in Alpha that exceeds 10% and could reach up to 29.9%.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThis transaction is projected to yield an additional net profit of approximately €180m ($203m) annually, which UniCredit intends to distribute to its shareholders in accordance with its established distribution policy.
UniCredit CEO Andrea Orcel said: “This step strengthens our successful partnership with Alpha, which has already delivered value well in excess of expectations. And there is much more to come. We have confidence in Alpha’s leadership, their strategy, and Greece’s growth trajectory.
“Throughout this partnership, our engagement with Greece’s government and leading institutions has been extremely positive. Their approach and support has contributed significantly to the partnership’s success, and to this further investment.”
The completion of the acquisition is anticipated by the end of 2025 and is expected to affect UniCredit’s CET1 ratio by around 40 basis points.
Last month, UniCredit announced it cannot finalise its public exchange offer for Banco BPM due to conditions set by the Italian government, outlined in a decree from the Presidency of the Council of Ministries under the Golden Power process.
