The Boards of Directors of Ergobank and EFG Eurobank met on Monday, 13 March 2000 and decided upon the exchange ratio of the two banks' shares, in the framework of the merger process currently under way.
The exchange ratio was evaluated by two leading international auditing firms, Deloitte & Touche and PriceWaterhouseCoopers, on the basis of an analysis and evaluation of the two banks according to International Standards. It is recalled that Ergobank appointed Deloitte & Touche to audit the exchange ratio as well as the merger agreement, while EFG Eurobank appointed PriceWaterhouseCoopers to carry out similar tasks. The exchange ratio, as decided by the two Boards of Directors, was 0.75 EFG Eurobank shares for each Ergobank share. These terms are derived from the relation between the total value of Ergobank compared to the total value of EFG Eurobank, estimated as 1-to-1.444, which is very close to the 1-to-1.4763 ratio resulting from the total market capitalisation according to the market close of Friday, 10 March 2000. The decision of the two Boards will be submitted for approval to Extraordinary Shareholder Meetings of the two banks in June, when their legal merger is due to be completed. The shareholders of the new banking entity will be entitled to a dividend for the Fiscal Year 2000.
It must be noted that, prior to the Extraordinary Shareholder Meetings of the two Banks, the Ordinary Shareholder Meetings will be held for current shareholders, who will be entitled to a dividend for the Fiscal Year 1999.