National Bank of Greece : Sale of NBG Group’s stake in the South African Bank of Athens

​National Bank of Greece S.A. ('NBG' or the 'Bank') entered into a definitive agreement to sell its entire stake (99.81%) in its subsidiary South African Bank of Athens ('SABA') to AFGRI Holdings (PTY) Ltd ('AFGRI'). The transaction was pursued in the context of NBG's Restructuring Plan and in line with its commitments towards European's Commission's DG Competition.

The transaction is expected to close within the second semester of 2017 and is subject to customary regulatory and other approvals, including from: (i) the South African Reserve Bank (ii) the South African Ministry of Finance and (iii) the South African Competition Commission and Competition Tribunal.

Following the transaction, NBG Proforma Q3 2016 CET1 ratio will increase by c.5bps, while the Bank's liquidity is expected to be enhanced by c. EUR 55 million (comprising of the equity value payment, replenishment of intragroup funding and subordinated debt assignment).

Investec Bank Ltd ('Investec') acted as financial advisor, while Freshfields Bruckhaus Deringer LLP ('Freshfields') and Edward Nathan Sonnenbergs Incorporated ('ENSafrica') acted as international and local legal counsels respectively to NBG.

SABA, established in 1947, is a South African-based bank providing comprehensive business banking services to the medium-sized local businesses, as well as niche transactional banking solutions to the broader market.

AFGRI is a leading agricultural services, financial services and food processing company operating in South Africa, 14 countries in the rest of the African continent, the USA, UK and Western Australia.