It appears that NBG are getting their proverbial ducks in a row to weather this storm. The biggest problem is the timing of the sale of the Finansbank subsidiary. The bank has said that the plan to be fully recapitalized by December 17th. They have also said that it is unrealistic that Finansbank will be sold before the end of the year.
If you read their recapitalization plan it is a plan to obtain all of the needed funds, not taking into account the sale. This likely means short term major dilution and bond swaps for equity. This is bad for the next few months.
However, if they had put the Finansbank sale into the plan they would have been under duress to sell it for a much lower price as they are facing a mandatory January 1st recapitalization deadline. They now will have the time to find the right buyer at the right price and re-pay convertible bonds used in the December 17th plan.
My guess is that this 'leap of faith' is not gaining much traction and they are having a hard time selling the convertible bonds as insiders do not trust they can pull this off.
So far all they have offered is words and promises. Until we see hard numbers the stock will continue to sink. Today is supposed to be the 'extraordinary shareholder meeting'. Let's hope something concrete and positive comes out of it.
Again, this is just one shareholders opinion.
Quoting an actual Reuters story does not make one desperate or a weirdo. It is a shame that Yahoo no longer lets you post links to articles but that is exactly what it said.
Greece reached an agreement with its lenders on financial reforms early on Tuesday, its finance minister said, removing a major obstacle holding up fresh bailout loans for the cash-starved country.
Tsakalotos said the deal meant Greece's parliament could now ratify the set of reforms to law, and that deputy euro zone finance ministers, known as the Euro Working Group, would on Friday endorse the deal.
That would allow a two billion euros (US$2.15 billion) aid disbursement and about 10 billion in recapitalization aid to the country's four main banks, he said.
It is on Edgar Online. Still a drop in the bucket when the baseline was 4,482 million.
But it is a start. And they quote good third quarter results as a factor in scoring the cash...
Greece and its eurozone creditors have reached an agreement on many issues in the reform programme that Athens is implementing in return for loans, the head of euro zone finance ministers Jeroen Dijsselbloem said in a statement on Sunday.
Greece needs a positive review of its reform progress from the euro zone to get the next, 2 billion euro tranche of loans as well as up to 10 billion euros for the recapitalisation of its banks.
But talks, which should have been completed by the middle of October, have stalled because of differences over details of a foreclosures law.
"I welcome that good progress has been made between the Greek authorities and the institutions in the discussions on the measures included in the first set of milestones and on the financial sector measures that are essential for a successful recapitalisation process," Dijsselbloem said.
"Agreement has been reached on many issues," he said.
He said deputy euro zone finance ministers, called the Euro Working Group (EWG) would meet on Tuesday to take stock of the situation and decide if a disbursement is possible.
The European Bank for Reconstruction and Development is set to buy up to 250 million euros of equity stakes of Greece's four biggest banks, a person with knowledge of the plans told Reuters.
The lenders are Alpha Bank, Eurobank, National Bank of Greece and Piraeus Bank that are all at least part owned by Greece's state-backed bank rescue fund.
"The Bank (EBRD) is prepared to invest in all of Greece's four big lenders," the person said on Thursday, adding that it would be able to spend up to 80 million euros per bank to a maximum of 250 million euros.
The investments will be the EBRD's first in Greece after the bank decided to expand lending to the thrice-bailed-out euro zone country early this year.
It is part of efforts to shore up Greek banks after European Central Bank Stress tests last month showed the four lenders the EBRD plans to take stakes in needed #$%$14.4 billion in additional capital between them to be able weather a major downturn.
Eurobank (EURBr.AT), which is roughly one-third owned by Greece's HFSF bank rescue fund and is the country's third largest lender, said earlier it would get up to 80 million euros from the EBRD as part of its 2.12 billion cash raising plans.
Peter Sanfey, the EBRD's then Acting Director of Country Strategy and Policy, told Reuters in July that as well as bank stakes it was also eyeing areas like logistics, agriculture and tourism for potential investment.
Bough in this afternoon and then the bottom fell out again. The company had good numbers. It seemed like an over reaction to me. Maybe Monday will bring some stability...
I sold today. While the science is being proved to be amazing, this company has been a complete disaster from the beginning. I can always buy back in to wherever the patents and the science goes, but getting out ahead at this time felt really good.
The biggest question here is what happens to Dr. Lanza? Will Astellas 'buy' him along with the company? Is he under obligation to anyone right now. He was the genius behind everything ACTC / OCAT ever accomplished. I am sure it would take months of investigation to figure out what royalties he is owed personally for the patents he has already achieved. I would still like to bet my future on him.
I hope he goes to a publicly traded company as I will follow with my dollars.
FYI: I sold out today and was lucky enough to get a 35% profit on 5,000 odd shares. I was really hoping this would be the big one but as they say 'A bird in the hand'...
It has been great knowing all the personalities on this board for the past 5 years. Even the ones that make Dr. Ben Carson seem sane.
If anyone has any Lanza insight please post it while the board is still active.
I just finished reading the 36 page prospectus on the NBG web site. It is easily find-able by anyone who cares to look but cannot be linked here.
1.) They are having a shareholder meeting on November 17th.
2.) They are proposing 1-15 reverse stock split.
3.) They want the bank fully recapitalized by December 11th.
4.) They are not taking into consideration the sale of Finasbank in this document which still makes this a very fluid situation.
5.) They intend to raise 4.6 billion Euro from bond swaps and new share issuance.
6.) New shares cannot be issued under.30 Euro pre-split.
While a lot of this sounds ominous there is good reason for it. If the bank is not recapitalized before January 1, 2016 they must work under a completely new set of rules. They have already stated that Finasbank may not be sold by the end of the year so they have basically put out a 'worst case' situation.
There may be panic selling in the next couple of weeks but any news on Finasbank sale could reverse that in an instant. Especially if the sale price is above 3.7 billion.
Here are the headlines from the page. Feel free to look up th whole document. It took me about 30 seconds to find under Investor Relations.
1. (i) Increase in the Bank s share capital due to capitalization of part of the Bank s special reserve of Article 4.4a of
Codified Law 2190/1920, and concurrent (ii) increase in the nominal value of each common registered voting share
of the Bank and reduction in the aggregate number of such shares by means of a reverse split, and (iii) reduction in
the share capital of the Bank through reduction in the nominal value of each common registered voting share of the
Bank (as it stands after the reverse split), with a view to forming an equivalent special reserve, as per Article 4.4a of
Codified Law 2190/1920, or, alternatively, through setting off against losses. Amendment of Article 4 of the Bank s
Articles of Association. Granting of authorities.
I read through the presentation slides that NBG released yesterday and one thing stood out:
Moreover, at an investor presentation, National Bank of Greece disclosed its intention to meet both the baseline-capital shortage and the capital needs from the adverse scenario through the 100% sale of Finansbank.
While the revenue generated from Finasbank will be a big loss for the company the fact that they may not have to do a substantial bond to equity transfer means that there is still some life left in the common shares.
Yahoo does not let you post links. But you can find a PDF of the whole presentation at the Bloomberg website in English. There are points that are a bit vague for my taste but overall it looks like they have a plan to survive this mess.
I think that yesterday's news about selling the Finisbank unit did not produce the quick pop over $1.00 that traders were expecting. They now know that this will be a long, drawn out process. Those looking for a short term flip are exiting giving those with the patience to hang on six months to a year a good buying opportunity.
This is a fluid situation and things could change at any moment. The next big step will be at what price they offer the bond to equity swap. Whatever this price is should form a floor as per the agreement bonds swapped for equity cannot be sold below the offering price.
Just that there was material news pending. The only news I have seen is that they are selling 100% of the Turkish bank. But we kind of already knew that...