kathimerini.gr
CVC Exits Ethniki Asfalistiki, Realizing Near 100% Return
CVC Capital Partners is nearly completely divesting from Ethniki Asfalistiki, selling 70% to Piraeus Bank for €469 million, resulting in a near 100% return on investment due to contractual clauses and the increased valuation of €670 million.
- What were the key factors contributing to CVC Capital Partners' substantial return on its investment in Ethniki Asfalistiki?
- CVC Capital Partners is almost completely divesting from Ethniki Asfalistiki, achieving a nearly 100% return on its investment. The company's valuation increased to €670 million from €505 million at the time of acquisition from Ethniki Bank.
- What are the long-term implications of this divestment for the Greek insurance market and the strategic partnerships CVC maintains within the healthcare sector?
- The deal with Piraeus Bank to acquire 70% of Ethniki Asfalistiki for €469 million leaves the future of Ethniki Bank's 9.9% stake uncertain but potentially lucrative, given the current valuation. CVC retains a 20% stake, aiming to maintain partnerships, particularly with hospitals where it holds a 35% share via Pure Health.
- How will the agreement with Piraeus Bank impact Ethniki Bank's remaining stake in Ethniki Asfalistiki and the overall financial implications of the initial agreement with CVC?
- This significant return is largely due to clauses in the agreement with Ethniki Bank concerning the achievement of targets by 2026, including sales of bank insurance products, losses on the old health portfolio, and a €130.5 million capital return to CVC in 2022-2023.
Cognitive Concepts
Framing Bias
The article frames the CVC Capital Partners' divestment as a largely successful venture, highlighting the nearly 100% return on investment. This positive framing overshadows the fact that significant conditions within the initial agreement were not met, and CVC received a substantial return of capital before the deal's intended completion. The emphasis on the high return minimizes the risks involved and the unfulfilled conditions.
Language Bias
The language used is generally neutral, but phrases such as "δελεαστική" (alluring or tempting), when describing the potential sale of NBG's stake, inject a degree of subjective opinion into the reporting. The article consistently presents the financial gains of CVC in a positive light, suggesting a bias in the narrative's overall tone. Replacing "δελεαστική" with a more neutral description, like "attractive," could improve the objectivity.
Bias by Omission
The article focuses heavily on the financial details of the CVC Capital Partners' divestment from Ethniki Asfalistiki, but omits any discussion of the potential impacts this transaction may have on policyholders or the broader Greek insurance market. While the article mentions the losses in the old health portfolio, it lacks detail on the nature of these losses and their implications for consumers. Furthermore, the article does not include perspectives from competitors or regulatory bodies.
False Dichotomy
The article presents a somewhat simplistic eitheor scenario regarding the National Bank of Greece's (NBG) stake in Ethniki Asfalistiki. It focuses primarily on the sale to Piraeus Bank and the potential sale of NBG's remaining stake, implying these are the only viable options. It doesn't explore other potential outcomes, such as NBG retaining its stake or attracting other buyers.
Sustainable Development Goals
The article highlights a significant financial return for CVC Capital Partners from its investment in Ethniki Asfalistiki. This demonstrates successful investment and potential economic growth, aligning with SDG 8 which promotes sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.