The implementation of the Strategic Alliance Agreement between ING and Piraeus Bank is progressing at a fast pace.
The two parties have finalized and approved the Business Plans for the three areas of cooperation, namely Bancassurance, Asset Management and Employee Benefits. The two Groups have chosen the legal vehicles which will carry out the Joint Venture operations and all relevant legal procedures have been initiated for the acquisition of the respective shareholdings by ING and Piraeus. The commencement of operations of the joint venture companies is scheduled for September 1st, 2002 in order to complete the legal procedures and obtain all necessary regulatory approvals from the competent authorities.
The parties have already selected the persons to head the above mentioned JVs. They are Mr. D.Knibbe for Bancassurance and EB and Mr. H.Makkas for Asset Management.
The preparations for the distribution of Piraeus Bank’s banking products through the NN Greece network have been successfully completed and sales of these products will commence before the end of May.
As regards to the four retail branches and the activities of ING Bank in Greece, after assessment of the relevant business considerations, it was decided, not to proceed with the absorption of existing ING Bank business in Greece by Piraeus Bank and to study as soon as possible the future of ING Bank in Greece.
The parties’ agreement for the acquisition of mutual cross shareholdings is progressing to implementation. At the forthcoming Annual General Shareholders’ Assembly of Piraeus Bank, shareholders will be asked to approve an increase in share capital at a price of €8.36 per share through a waiver of their preemptive rights in order to enable NN Life Greece and NN Non-Life Greece to participate in the share capital of Piraeus Bank with a total stake of 5%. In parallel, the two aforementioned NN insurance companies will proceed to a capital increase by €70 million in cash which will be contributed by their parent ING Continental Europe Holdings B.V. and the latter will subsequently transfer to Piraeus Bank 20% of the shares of the two Greek NN insurance companies. The above transactions are expected to be completed by June 20th, 2002.