Friday , May 7 2021

Postbank bought the Piraeus Company in Bulgaria

The Greek Eurobank Ergasias S.A. announced that an agreement had been reached the acquisition of Piraeus Bank Bulgaria by its subsidiary Postbank.

After the agreement is completed TT Hellenic Postbank will have assets totaling more than 5 billion English, with a capital exceeding 600 million Euros, and after realizing the expected synergies, earnings before provisions and net profits will amount to € 150 million and € 70 million respectively.

Until September 2018 Piraeus Bank has assets of € 1.7 billion, a credit portfolio of € 820 million and deposits of € 1.3 billion. The Bank is active in retail banking and mainly in corporate banking via a branch network with 70 branches and more than 900 employees.

The agreement will consolidate Postbank's position in the Bulgarian banking market the bank will have an expected market share of more than 10% and will hold the third place in the size of the loan portfolio.

The value of the shares is 75 million eurosafter the completion of the transaction, the impact on Eurobank Tier 1 capital will be minimal at 14 basis points and after the expected synergies have been realized, the transaction is expected to have a positive impact on the capital.

"We are pleased with the agreement reached with Piraeus Bank for the acquisition of Piraeus Bank Bulgaria by our subsidiary in Bulgaria Postbank. The acquisition follows Eurobank's strategy to focus on the expansion of its international markets, which it considers important, as well as the Bulgarian one. After acquisition Eurobank Bulgaria will be the third largest bank in the country. Our goal is to serve our clients better, to support the Bulgarian economy and Greek businesses in our neighboring country. We would like to thank our colleagues from Piraeus Bank for the good cooperation that led to the conclusion of this agreement and to welcome our new colleagues from Piraeus Bank ", commented Stavros Giannou, Deputy Chief Executive Officer of Eurobank.

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

Barclays Bank Plc is a financial advisor to the Eurobank Group for the deal, and the legal services come from Milbank, Tweed, Hadley & McCloy LLP and Karatzas & Partners.

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