Erste Group Bank To Buy 24.12% Stake In Romania Unit
September 14 2011 - 2:52PM
Dow Jones News
Austrian bank Erste Group Bank AG (EBS.VI) said Wednesday it
will acquire 24.12% stake in its unit Banca Comerciala Romana S.A.
(BCR.YY) for about EUR435 million in cash and stock, after reaching
an agreement with four of the five minority shareholders.
"It has always been our strategy to hold the highest possible
stake in our subsidiaries and we are glad to have now this
possibility also in Romania," Chief Financial Officer Manfred
Wimmer said.
The bank reached a deal with SIF Banat Crisana, SIF
Transilvania, SIF Muntenia and SIF Oltenia to buy 2.62 billion
shares in BCR saying the cash portion of the deal will be financed
from retained earnings, while the share swap will be funded by
issuing up to 16.1 million new shares over the course of the
transaction using existing capital.
The deal is subject to the successful completion of the
respective SIF corporate approval processes.
After the deal, Erste Group's stake in BCR will increase to
93.52% from 69.4% stake it held previously, while the participating
SIF's will hold up to 1.0% stake in Erste Group after the deal.
The bank has been in discussions with BCR's five minority
shareholders over alternatives to listing the unit on the Bucharest
stock exchange, and with this deal the participating SIFs will
waive their rights to request the listing of BCR, as well as to
special dividends, Erste Bank said.
-By Neetha Mahadevan, Dow Jones Newswires; +49 69 29 725 500,
neetha.mahadevan@dowjones.com
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