Filenews 13 July 2024
Apart from whether or not Eurobank's valuation of Hellenic Bank is fair based on the tender offer document, the independent expert Houlihan Lokey UK's report has separately submitted the views of ETYK, PEO and SEK on the employment status following a possible merger between Hellenic and Eurobank Cyprus.
Regarding the valuation, two weeks before the expiry of the tender offer (July 30th) submitted by Eurobank to Hellinikon shareholders, at a price of €2.56 per share, the Board of Directors agrees and adopts the independent expert's opinion that the proposed consideration "is not fair and reasonable from a financial point of view".
The results of the expert's analysis show that valuation reference ranges were €2.78 – €3.62 per share, 8.6% – 41.4% higher than the proposed consideration. Also, the Board of Directors in the opinion published yesterday states that "the proposers (Eurobank) may, if they comply with the applicable regulatory provisions, replace members of the Board of Directors" and note that the proposers have already expressed such an intention.
This essentially means, says the board, that proposers have the ability to determine and/or influence future strategic decisions of the board and the company.
The impact on workers
The Board also notes that, as stated in the tender offer document, the offerors do not currently intend to unilaterally make substantial changes to the company's existing employment policy.
However, trade unionists want clear answers in the tender proposal. "It is a vague, general and vague text, which does not provide Eurobank's intentions regarding the working framework and this is something that worries us greatly. There is a complete lack of protection for employees in Hellenikon. Nowhere is there any reference to the country's labour institutions and respect for them as well as for the collective labour agreements and individual agreements that exist between ETYK and Hellenic Bank".
The ETYK concludes that the tender offer document should definitely include a provision to safeguard workers' positions and rights.
PEO and SEK, in a joint position, state that in the event of a merger between Hellinikon and its subsidiary Eurobank Cyprus, the transfer of personnel should be made in accordance with the provisions of existing legislation and safeguard all jobs. Also, in case of a merger, it should be ensured that all employees currently employed in Hellinikon will be transferred, as provided by law. With their transfer, the continuity of their service and all the provisions of existing collective agreements should be recognized and ensured.
The two trade unions are calling for the signing of a single collective agreement that unifies and ensures the application of uniform terms of employment, payroll, placement in salary scales, contractual loans for staff, retirement limit.
