LONDON--TBC Bank Group PLC (TBCG.LN) said Monday that it is buying a 93.64% stake in JSC Bank Republic for 103 million pounds ($136.72 million), from Societe Generale S.A. (SCGLY), giving it full control of the bank.

The acquisition will increase TBC Bank's loan market share by 7.3% to 35.7%, and the deposit market share by 5.3% to 34.5%, it said.

Once fully achieved, pre-tax cost synergies from the acquisition have been estimated at GEL 21 million, being derived primarily from marketing, consulting costs, streamlining of other administrative expenses as well as from moderate branch network optimization, the company added.

Integration costs are expected to be GEL 23 million, TBC said, adding that the deal will benefit EPS from 2017.

The consideration is 70% payable in cash from own funds and 30% in newly issued TBC Bank shares, it said. As a result of the transaction, Societe Generale will become a 5.4% shareholder in TBC Bank with a holding period (lock-up) of one year, which can be waived by TBC Bank at its discretion.

The parties have also agreed to explore future partnering opportunities within Georgia, TBC said. TBC Bank has already entered into preliminary negotiations to buy the remaining 6.36% stake owned by the European Bank for Reconstruction and Development.

Shares at 0730 GMT unchanged at 1100 pence.

-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

September 12, 2016 03:48 ET (07:48 GMT)