NBG » Topics » Background and reasons for the Offer

This excerpt taken from the NBG 6-K filed Sep 26, 2007.

Background and reasons for the Offer

 

National Insurance was established by NBG in 1891 as the Greek company of general insurances with the tradename “THE ETHNIKI” and was listed on ATHEX  in 1946. The Offeror has been its largest shareholder ever since and holds shares, which represent 76.92% of National Insurances total paid-up share capital and voting rights.

 

National Insurance is likely to miss its profitability targets for the current year due to the contraction of prices in the general insurance sector brought about by intense competitive pressure.  As a result, the management of National Insurance recognised that the targets, as set out in the 2006-2008 Business Plan, are no longer achievable for the current year.  In addition, National Insurance’s shareholders have not received dividends over the past 3 years and its accumulated losses do not permit the distribution of dividends in the near future.

 

Nevertheless, in recognition of the long term growth prospects for the Greek insurance market in which National Insurance has a leading position, NBG will continue to support National Insurance’s effort to achieve its targets.  At the same time, NBG will endeavour to further the cooperation between the distribution networks of the two companies and the sale of insurance products to the Bank’s client base. The realisation of such synergies and of cost cutting through the reduction of common or parallel activities of the two companies will be facilitated by an increased share holding of NBG in National Insurance.

 

In light of the above, NBG decided to offer National Insurances minority shareholders the opportunity for an immediate exit from their entire investment.

 

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki