The European Bank for Reconstruction and Development (EBRD) has sold its 15% stake in Erste Bank Hungary back to Austria's Erste Group, the Hungarian lender said in an announcement posted on the website of the Budapest Stock Exchange on December 12.
With the transaction, Erste Group has become the sole owner of Erste Bank Hungary.
Francis Malige, EBRD managing director of financial institutions, said the investment had been designed to help the Hungarian bank recapitalise while supporting a positive relationship with the authorities.
Last month, Hungary sold its 15% stake in Erste Bank Hungary, valued at HUF87.5bn (€230mn) to the Austrian lender. Hungary will use the proceeds from the sale for the purchase of Budapest Airport.
Hungary and the EBRD had acquired the 15% stakes in the lender in 2016 in the framework of a strategic agreement.
Erste Bank is the fifth-largest bank in assets. It had operating profit of HUF150bn in the first nine months, up from HUF67bn in the base period.
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