UPDATE 1-Vote on Piraeus Bank share sale postponed to April 18

Fri Apr 12, 2013 5:56am EDT

Related Topics

(Adds date of repeat meeting)

ATHENS, April 12 (Reuters) - Greece's Piraeus Bank postponed a shareholder vote on its 7.3 billion-euro ($9.58 billion) recapitalisation plan to April 18 because not enough shareholders turned up to a meeting on Friday.

Piraeus is seeking their approval to raise up to 400 million euros through a private share placement and up to 6.94 billion euros from a rights issue to boost its capital base.

Greece's second-largest lender posted a loss in 2012, hurt by provisions for bad debt and higher funding costs due to the country's deep recession.

Friday's meeting was attended by shareholders representing just 10.4 percent of the bank's shares, far fewer than the 66.6 percent required to approve the plan. Next week's repeat assembly will require a smaller quorum of 50 percent.

The absence of most shareholders on Friday does not necessarily signify a lack of support for the plans. It is common in Greece for such shareholder votes to be delayed and for proposals to be approved only after two or three meetings.

Greece's four major banks need 27.5 billion euros in fresh funds to restore their solvency ratios to levels required by the country's central bank after incurring losses from a sovereign debt writedown and impaired loans.

Under the terms of the recapitalisation, a minimum amount of new equity must be raised from the market for the banks to remain privately run. (Reporting by Lefteris Papadimas and George Georgiopoulos; Editing by Tom Pfeiffer)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.