EBRD exits Bulgaria's MKB Unionbank

By bne IntelliNews May 27, 2013

Hungary's MKB Bank, the majority owner of Bulgaria's fourteenth-largest lender, MKB Unionbank, bought the remaining 3% of the local unit from the EBRD thus raising its stake to 100%, the bank said on its website. The value of the deal was not disclosed.

MKB Bank acquired a 60% stake in local UnionBank in 2006. In 2008, it raised its stake in the local subsidiary to 94% after Bulgarian minority shareholders exercised their contractual put options.
In July 2012, MKB Bank bought another 3% of the local unit from the EBRD thus raising its stake to 97%. The EBRD's exit is in line with the terms stipulated in the shareholders' agreement and in consensus with MKB Unionbank's majority shareholder MKB, the EBRD commented back then. The EBRD bought 15% of the capital of the Bulgarian bank in 2002.

In March, Capital daily reported that First Investment Bank (FIB), Bulgaria's third largest lender in terms of assets, has submitted a binding offer to acquire MKB Unionbank.

MKB Bank, is a subsidiary of German Bayerische Landesbank (BayernLB). In 2012, BayernLB was rescued by its home state of Bavaria and in exchange it committed to reducing its balance sheet by 51% in order to repay EUR 5bn of state aid. According to unconfirmed reports, the price offered by FIB for the local MKB unit is close to BGN 100mn (EUR 51mn).

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Bulgaria's BACB to acquire 99.94% of Tokuda Bank

The Bulgarian-American Credit Bank said on April 16 it has agreed to acquire 99.94% of local Tokuda Bank from Japan-based Tokushukai Incorporated. The two banks are among the smallest in Bulgaria ... more

bne IntelliNews Southeast Europe Outlook 2024

This Southeast Europe Outlook 2024 has been prepared by bne IntelliNews as part of a series of annual reviews providing updates on the geopolitical, macroeconomic and commercial state of ... more

EBRD 2023: EBRD, EU and ILX to co-operate to boost private-sector finance in Emerging Europe

The European Bank for Reconstruction and Development (EBRD), the European Union, and ILX Management, an emerging market asset manager, have joined forces to enhance private-sector finance in Emerging ... more

Follow Us On

Most Read

  1. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  2. Don't mention the "D" word - Ukraine
    6 days ago
  3. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    9 days ago
  4. The 'wet-bulb' set to kill hundreds of thousands of people if temperatures and humidity levels continue to rise
    4 days ago
  5. The models are wrong, climate change is accelerating faster than predicted
    1 day ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    27 days ago
  2. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  3. BRICS announce a blockchain-based payment system to create a common currency
    29 days ago
  4. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    1 month ago
  5. Saudi Arabia to scale back plans for Neom city
    16 days ago

Reports

Dismiss