TBC Bank Takes Full Control of JSC Bank Republic in GBP103 Million Deal
September 12 2016 - 4:03AM
Dow Jones News
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)
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