Piraeus Bank SA Announces Acquisition Of Geniki Bank From Societe Generale

Piraeus Bank SA announced that it signed on October 19, 2012, a definitive agreement with Societe Generale regarding the acquisition of Societe Generale's total stake (99.08%) in Geniki Bank. This agreement falls within the process framework that has been defined by the Bank of Greece and the Hellenic Financial Stability Fund (HFSF) aiming at the restructuring of the Greek banking system and strengthening its financial stability. The terms and conditions of the transaction have been approved by the HFSF. The transaction is expected to be consumated before the end of 2012 and is subject to final regulatory approvals. A total investment by Societe Generale of EUR 444 million, subject to a possible upward adjustment at closing date of the transaction, on the basis of Geniki Bank's Net Asset Value as of September 30, 2012. This amount will be paid as part of the completion of the transaction and will consist of two parts. An advance to Geniki Bank to be capitalised for a total amount of EUR 281 million, as determined by the Bank of Greece; subscription by Societe Generale to a bond issued by Piraeus Bank for an amount equal to EUR 163 miliion (with a potential positive adjustment). The aggregate consideration for the acquisition of 100% of Geniki sharesheld by Societe Generale and Societe Generale’s receivables corresponding to the capital advances, was agreed at EUR 1 million.