Eurobank agrees to 15.8-for-1 share swap to acquire Grivalia Properties

ATHENS, Nov 26 (Reuters) - Greece’s third-largest lender Eurobank is offering 15.8 of its shares for every one share of real estate firm Grivalia Properties in an agreed acquisition via a share exchange, the bank said on Monday.

The merger plan aims to strengthen Eurobank’s capital base and help the bank speed up the reduction of its sour loans.

The merger is capital and earnings accretive with fully loaded Core equity Tier-1 (CET1) rising to 13.8 percent and pre-provision income to 0.28 euros per share, the two companies said in a statement.

“The combined group is targeting strong sustainable earnings per share and over 10 percent return on tangible equity in 2020,” they said.

Toronto-based Fairfax Financial Holdings, which currently holds 18.23 and 51.43 percent in Eurobank and Grivalia, respectively, will become the largest shareholder in the merged entity with a 32.93 percent shareholding. (Reporting by George Georgiopoulos; editing by Darren Schuettler)