Erste Group reaches agreement to buy 24 percent stake in BCR from 4 SIFs

Newsroom 14/10/2011 | 14:37

Erste Group has reached an agreement in principle with four of the five SIF minority shareholders in BCR. Therefore, Erste Group will acquire their 24.12 stake or 2.618.286.036 shares in BCR. The total value of the transaction amounts to EUR 435 million, in a combined share swap and cash deal.

“It has always been our strategy to hold the highest possible stake in our subsidiaries and we are glad to have now this possibility also in Romania. Despite the recent tough period, Erste Group as a strategic investor is taking the long term view and we thus maintain our confidence in and commitment to Romania,” stated Manfred Wimmer, CFO Erste Group.

Once the transaction is completed each participating SIF will hold an up to 1.0 percent stake in Erste Group. The SIFs’ shareholdings in Erste Group are subject to the following lock-up provisions: each participating SIF can dispose of up to 25 percent of its Erste Group shares immediately after the acquisition as well as after 6, 12 and 18 months from the date of acquisition.

In October 2006 Erste Group completed the acquisition of a 61.9 percent stake in BCR from AVAS (Romanian Authority for Asset Recovery), the EBRD and IFC. In November 2006 Erste Group acquired a further 7.2 percent in BCR through an offer made to BCR employees. The SIFs have been holding a combined 30.12 percent stake in BCR (SIF Banat Criana, SIF Moldova, SIF Transilvania, SIF Muntenia, each with 6.0 percent and SIF Oltenia with 6.12 percent.

Ovidiu Posirca