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Finance Postbank buys Piraeus for 75 million euros



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Who wants to buy Piraeus Bank

Safe Candidates are Tsvetelina Borislavova BSCB, Petja Slavova Investbank and Greek Owner of Post Bank

June 15, 2018

UBB:

At the time of the agreement

NBG has already opted for KBC to sell its Bulgarian bank and will quickly announce a deal by the end of the year

16 December 2016

The new big Greek bank

Nine months after the Euro 1 deal, Alfa Bank began to transfer Postbank to the fourth largest player on the Bulgarian market

March 6, 2016

Postbank buys Piraeus Bank for 75 million euro after the headquarters of both Athens authorities has signed a deal to complete the acquisition deal. Tsvetina Borislavova BAKB and Petja Slavova Investbanka, as well as an active fund in the region, participated in the competition for the purchase of information from Capital.

The sale of a small bank has taken months, because Greek parent bankers are forced to split unsuspecting assets alongside the debt crisis in the Southern Neighborhood. The deal will result in an improvement in Postbank, which is currently the fifth largest asset on the Bulgarian market. The buyer's stated intention is to merge and thus become the 3rd place on the market. After the transaction Postbank will remain the only Greek bank in the country.

Another purchase

Following the acquisition of Alfa Bank in Bulgaria in 2016, Postbank consolidated the last remaining domestic market by Greek business in this sector. This was expected and logical, given the similarity of corporate culture and institutional customers, which do not cause significant difficulties in future mergers.

To continue this, regulatory approvals are required, and in the first half of 2019, the transaction will be approved in a positive way.

From the first nine months of this year, Postbank (operating with Eurobank Bulgaria) has an active BGN 8.1 billion and Piraeus Bank Bank's assets of 3.1 billion, and it is expected that the merger will improve Postbank's 5 banks from banks where competition in the last two has grown sharply over the years due to concentration. The predictions are that Postbank's total assets after the transaction will exceed € 5bn, which will lead to the institution before Fibank and possibly UBB, which recently ended up being Greeks after the acquisition of Belgian KBC.

"After the acquisition, Eurobank Bulgaria will be the third largest bank in the country," commented a statement to the press Stavros Yoannou, CEO of Greece's Eurobank. "This acquisition follows Eurobank's strategy to focus on the expansion of international markets that it considers important as our goal is to better serve our customers, support the Bulgarian economy and the Greek business in our neighboring country," added the senior manager of the Greek bank.

Expected effects

As expected, synergies after the transaction will generate revenue of EUR 150 million before provisions and a net profit of EUR 70 million. Currently, Piraeus Bank employs more than 900 people, and its branch network has 70 offices throughout the country. It is not clear whether the transaction also includes a carryover of a bad credit portfolio of EUR 126 million, which awaits the solution for the new owner and is also interested in, but which is collected by the agencies.


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