Serb govt, EBRD, IFC offer for sale stakes in Serbia’s Cacanska Banka

By bne IntelliNews November 26, 2013

The Serbian deposit insurance agency has invited investors to submit letters of interest in the acquisition of at least 76.74% in lender Cacanska Banka. The offered stake is made of the holdings of the Serbian government, the EBRD, the IFC and local Beogradska Banka, which has been in liquidation, the agency said in a public notice. It added it has picked up Ernst&Young as an advisor on the transaction.

Potential buyers should submit their letters of interest by December 24. At the same time, they are obliged to apply with the central bank for a preliminary permit to acquire a direct ownership in Cacanska Banka. They should as well send the central bank all documentation needed for evaluating their credit worthiness.

According to the central registry of securities, the Serb government is the largest single shareholder in Cacanska Banka with a 28.5% stake, followed by the EBRD with 25% and the IFC with 20%. Beogradska Banka controls a small stake of 3.27%.

In September, the head of Cacanska Banka's executive board - Dragan Jovanovic, announced the privatisation plans, indicating there already are interested buyers. Back then Jovanovic said he believes the lender would be sold by the end of 2014 and the privatisation will be successful because of the attractive strategic position and good operations of the bank.

Cacanska Banka's pre-tax profit tumbled 65% y/y to RSD 19mn (EUR 166,600) in Jan-Sep 2013 as its net interest income fell 4% y/y to RSD 808mn. However, the bank's financial reports indicate that the large profit in Jan-Sep 2012 was mainly due to RSD 1.57bn net revenue from a change in the value of assets and liabilities - while in the nine months of 2013 this segment showed net revenue of only RSD 68mn. (Still, the latter compensated for the large net loss of RSD 1.46bn from exchange rate differences back in Jan-Sep 2012 vs. RSD 149mn net loss on this basis in the like period of the current year.)

It was the twentieth largest bank among 31 active in Serbia at end-Sep in terms of asset. Its net assets stood at RSD 33.7bn at end-Sep, up from RSD 32.8bn at end-2012. Cacanska Banka's pre-tax profit nearly halved to RSD 57mn in 2012 from RSD 130mn in 2011.

Related Articles

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

China's Hesteel Group to boost investments in Serbia’s Smederevo steel mill

Representatives of China's Hesteel Group, which acquired Serbia’s only steel mill Zelezara Smederevo in July 2016, plan to invest ... more

French court refuses to extradite ex-Kosovo PM Haradinaj to Serbia

The Court of Appeals in the French town of Colmar decided on April 27 not to extradite Kosovo’s former Prime Minister Ramush Haradinaj to Serbia.  The decision was celebrated in Kosovo and ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss