Sunday , October 2 2022

Post Bank bought Piraeus Bank Bulgaria ::


Post Bank acquired Piraeus Bank Bulgaria

Photo: Reuters

Eurobank Ergasias S.A. (Eurobank) announced the conclusion of an agreement on the purchase of Piraeus Bank Bulgaria by its subsidiary Eurobank Bulgaria ("Postbank").

Since September 2018, Piraeus Bank Bulgaria has assets of 1.7 billion euros, a loan portfolio of 820 million euros and 1.3 billion euros of deposits. The Bank operates in retail banking and mainly in corporate banking through a branch network of 70 affiliates and more than 900 employees.

The contract will consolidate Postbank's position on the Bulgarian banking market, so the bank will have an expected market share of over 10% and the third largest loan portfolio. Upon completion of the contract, Postbank will have assets in the total amount of more than 5 billion, with a capital of more than 600 million euros, and after realization of the expected synergies, profit before reservation and net profit of over 150 euros and more than 70 million euros. In addition, the bank will maintain its strong capital adequacy and liquidity coefficients.

The value of the shares is EUR 75 million, after the conclusion of the transaction, the impact on the core capital of Eurobank will be minimal with 14 basis points, and after realization of the expected synergies, the transaction is expected to positively affect the capital.

Stavros Ioannou, deputy executive director of Eurobanka, said: "We are pleased with the agreement reached with Piraeus Bank for the purchase of Piraeus Bank Bulgaria by our bank in Bulgaria Postbank. The acquisition follows the Eurobank's strategy of focusing on the expansion of its international markets, which it regards Eurobank Bulgaria will be the third largest bank in the country after the acquisition. Our goal is to better serve our clients, support the Bulgarian economy and the Greek business in our neighboring country. go to our colleagues from Piraeus Bank for the good cooperation that has led to the conclusion of this agreement and welcome our new colleagues from Piraeus Bank Bulgaria. "

The completion of the transaction is subject to the approval of the competent regulatory and supervisory authorities and is expected to be completed in the first quarter of 2019.

Barclais Bank Plc is a financial adviser to the Eurobank Group in terms of the agreement, and legal services are from legal firms Milbank, Tveed, Hadlei & McCloi LLP and Karatzas & Partners.

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