National Bank of Greece (NBG) has terminated a previously announced agreement to divest a 75% stake in Ethniki General Insurance to EXIN Financial Services.
NBG in a statement said: “On 28 March 2018, which was the last date (Longstop Date) for EXIN to fulfil certain condition precedents specified in the Share and Purchase Agreement (SPA) entered into between NBG and EXIN, NBG took note that such condition precedents were not fulfilled and henceforth decided to terminate the SPA and will examine alternative options.”
The bank said it will examine alternative options.
NBG signed an agreement with EXIN Financial Services to offload a 75% stake in Ethniki Hellenic General Insurance for €718.3m in June 2017.
While announcing the agreement last year, NBG CEO Leonidas Fragkiadakis said: “After 125 years of common history dating back to 1891, NBG divests 75% of its interest in Ethniki Insurance to deliver on its commitment to its shareholders and the European Authorities.
“At the same time, it entered into an exclusive bancassurance agreement to govern the distribution of the products of Ethniki Insurance via the NBG network. The decision to retain a 25% stake is in line with the spirit of partnership that will govern our relationship with EXIN going forward.
“I am pleased that our new partner, EXIN, has a long-term strategic interest in Greece and will continue to grow and develop Ethniki Insurance for years to come.”