Greek Eurobank Ergasias S.A. that an agreement has been reached purchase of Piraeus Bank Bulgaria from the subsidiary Postbank.
After completing the deal Postbank will have assets of more than BGN 5 billion, capital of more than EUR 600 million, after realization of the expected synergy, the profit from the previous provisions and the net profit will reach 150 million euros or 70 million euros.
Until September 2018 Piraeus Bank Bulgaria has assets of EUR 1.7 billion, a loan portfolio of EUR 820 million and a deposit of EUR 1.3 billion. The Bank operates in retail banking and, in particular, in business banking through a branch office in 70 branches and more than 900 employees.
This will consolidate the position of Postbank on the Bulgarian banking market the bank will have an expected market share of more than 10% and will be the third largest credit portfolio.
The value of the shares is 75 million eurosafter the transaction is concluded, the impact on the core capital of the Eurobank will be minimal at 14 basis points and, as expected synergies, the transaction is expected to have a positive impact on the capital.
"We are pleased with the agreement we have reached with Piraeus Bank to buy Piraeus Bank Bulgaria from Postbank, our subsidiary in Bulgaria. The acquisition follows the Eurobank strategy to focus on expanding its international markets, which it considers important, just like Bulgarian. After the purchase Eurobank Bulgaria will be the third largest bank in the country. Our goal is to better serve our clients, support the Bulgarian economy and the Greek business in the neighboring country. We thank our colleagues from Piraeus Bank for the good cooperation that led to the conclusion of this agreement and to welcome our new counterparts from Piraeus Bank of Bulgaria, "commented Stavros Yoannou, Deputy Executive Director of Eurobank.
The completion of the transaction must be approved by the relevant regulatory and supervisory authority and is expected to end in the first quarter of 2019.
Barclays Bank Plc is a financial adviser to the Eurobank Group in terms of an agreement, and legal services are provided by law firms Milbank, Tweed, Hadley & McCloy LLP and Karatzas & Partners.