Shearman & Sterling advised Société Générale on its definitive agreement to sell its entire 99.08% stake in its Greek subsidiary, Geniki Bank, to Piraeus Bank. Specifically, the agreement provides for the sale by Société Générale of a 99.08% stake in Geniki’s share capital, representing 100% of Société Générale’s interest, including Société Générale’s advances in capital.
The transaction has been approved by the Board of the Hellenic Financial Stability Fund (HFSF) and is expected to be completed before year end, subject in particular to final regulatory approvals.
The sale price is €1 million. Société Générale’s total investment is €444 million, subject to adjustment on closing on the basis of Geniki Bank’s Net Asset Value as of 30 September 2012. This amount will consist of two parts: 1) An advance to Geniki Bank to be capitalized for a total amount of €281 million, as requested by the Bank of Greece (this amount is subject to adjustment on the basis of due diligence performed pre closing by the HFSF); 2) A subscription by Société Générale to a bond issued by Piraeus Bank, for an amount estimated at €163 million.
The Shearman & Sterling team included partner Guillaume Isautier, assisted by associates Maud Lefeuvre, Olivia Depret-Bixio and Inaya Abdellatif-Guillon, as well as of counsel John Madden for M&A aspects, partner Hervé Letréguilly for Capital Markets aspects and partner Niels Dejean, assisted by associate Anne-Sophie Maes, for Tax aspects. PartnerMei Lian, counsel Philippe Wolanski and associate Leona McManus advised on finance aspects. Partner Stephen C. Mavroghenis advised on antitrust aspects.
