Tuesday , August 16 2022

Eurobank announced the acquisition agreement from Piraeus Bank Bulgaria – News


Eurobank Ergasias S.A. ("Eurobank") announced that it had entered into the agreement with Piraeus Bank S.A. ("Piraeus Bank") for the acquisition of Piraeus Bank Bulgaria ("Piraeus Bank Bulgaria"), a subsidiary of
Piraeus Bank, from the subsidiary Eurobank, Eurobank Bulgaria ("Postbank"), ("the transaction").

As of September 2018, Piraeus Bank Bulgaria has assets of EUR 1.7 billion, a loan portfolio of EUR 820 million and EUR 1.3 billion in deposits. The bank is active in the banking industry
retail and primarily within corporate banking through a branch network of 70 offices and more than 900 employees.

The deal will consolidate Postbank's position on the Bulgarian banking market, so that the bank will have an expected market share of over 10% and will rank third in the credit amount
portfolio. After the transaction, Postbank will have assets of more than 5 billion, a capital of more than 600 million euros and, after having realized the expected synergies, earnings before
provisions and net profit of more than 150 and over 70 million euros respectively. Apart from this, the bank will maintain its solid capital adequacy and liquidity conditions.

The value of the shares is 75 million euros. After the end of the transaction, the effect on Eurobank's Tier 1 capital will be at least 14 points and after implementation
Of the expected synergies, the transaction is expected to have a positive effect on capital.

Stavros Yoannou, Vice President of Eurobank, commented: "We are pleased with the agreement with Piraeus Bank for the acquisition of Piraeus Bank Bulgaria from Postbank,
our subsidiary in Bulgaria. The acquisition follows Eurobank's strategy to focus on expanding its international markets, which it considers important, as well as the Bulgarian. then
acquisition of Eurobank Bulgaria will be the third largest bank in the country. Our goal is to better serve our customers, to support the Bulgarian economy and the Greek business in
our neighboring country. We would like to thank our colleagues from Piraeus Bank for the good cooperation that led to the conclusion of this agreement and welcome our new colleagues from Piraeus
Bank Bulgaria ".

The operation of the transaction is subject to approval by relevant regulatory authorities and regulatory authorities and is expected to be completed during the first quarter of 2019.

Barclays Bank plc is financial advisor to the Eurobank Group as regards the business and legal services from the law firms Milbank, Tweed, Hadley & McCloy LLP and Karatzas & Partners.

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