Thursday , April 15 2021

Funding Postbank buys Piraeus for € 75 million



More on the subject

Who wants to buy Piraeus Bank

The secure candidates are BSCB of Tsvetelina Borislavova, Investbank of Petya Slavova and the Greek owner of Postbank

June 15, 2018

UBB:

In a time of unification

National Bank has already selected KBC to sell its bank in Bulgaria and will soon announce an agreement by the end of the year

December 16, 2016

The new big Greek bank

Nine months after the Euro 1 agreement, Alfa Bank began its transfer to Postbank, creating the fourth largest player in the Bulgarian banking market

March 6, 2016

Postbank buys Piraeus Bank for 75m euros after the headquarters of the two institutions in Athens, signed an agreement to complete the takeover agreement. The tender for buying deals with information from Capital also included the BACB of Tsvetelina Borislavova and Investbank of Petya Slavova, as well as a fund operating in the region.

The sale of the small bank has worked for months due to the pressure of the creditors of their Greek mother banks to be separated by non-strategic assets alongside the debt crisis in the southern neighbor. The result of the agreement will be to improve Postbank's position, which is now the fifth largest asset in the Bulgarian market. The stated intention of the buyer is to merge and thus become No. 3 for the market assets. After the transaction, Postbank will remain the only Greek bank in the country.

Another takeover

Following the purchase of Alfa Bank Bulgaria in 2016, Postbank consolidated the last position in the local market by the Greek business in the sector. This was expected and reasonable, given the similar corporate culture and clientele of the institutions, which does not create major difficulties in the forthcoming merger.

In order to move on to it, we need to get approval from regulators and a positive development will be the confirmation of the agreement in the first half of 2019.

Since the first nine months of this year, Postbank (which operates through Eurobank Bulgaria) has assets of £ 8.1 billion and Piraeus Bank has assets of € 3.1 billion and the merger is expected to improve positions Postbank a bank in the top 5 positions of banks, where competition has intensified sharply in the past two years due to concentration. The forecasts are that Postbank's total assets after the deal will exceed 5 billion euros, which will lead the foundation in front of Fibank and perhaps UBB, which recently ceased to be a Greek after the acquisition of Belgian KBC.

"After the acquisition, Eurobank Bulgaria will be the third largest bank in the country," commented Stavros Giannou, Deputy Chief Executive Officer of the Greek Eurobank. "The acquisition follows Eurobank's strategy to focus on expanding its international markets, which it considers important as ours is to better serve our customers, to support the Bulgarian economy and Greek businesses in our neighboring country," he added. senior director of the Greek bank.

Expected results

As expected, after-agreement synergies will generate revenue of € 150 million before provisions and a net profit of € 70 million. At present, Piraeus Bank employs more than 900 people and the branch network has 70 offices across the country. It is not clear whether the agreement also includes a transfer of bad debt portfolio of EUR 126 million, which awaits a solution for the new owner and is also interesting, but by collecting agencies.


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