National Bank: Contract of sale of a subsidiary in Bulgaria

The National Bank signed a contract with the belgian bank KBC (KBCGroup) for the sale of 99.91% of its subsidiary…
bank Bulgaria, United Bulgarian BankA.D. (UBB) and 100% of its subsidiary company, Interlease E. A.D.
The agreed price for the transaction, as referred to in the notice of the amount to 610 million euros. Prior to the completion of the transaction, the UBB will make a dividend distribution to the MIP of eur 50 million, upon approval of the Annual General Meeting.
The purchase price result in an increase in the proforma capital ratio first-gradient (CET1) capital from the EIB for the 3rd quarter of 2016 by about 100 basis points.
The sale of UBB confirms the commitment of the administration of the MIP to apply consistently the Bank’s restructuring plan, as reported by the ana – MPA.
Leonidas Fragkiadakis, ceo of MIP, said: “after nearly 15 years of successful presence in Bulgaria, the EIB αποεπενδύει from the UBB and the Interlease in order to carry out its commitment to shareholders, and the european authorities. H this transaction further strengthens the EIB in terms of capital and liquidity, allowing it to direct resources towards the recovery of economic activity in Greece. I am glad that the new owner of UBB, KBC, a strong and reliable partner, will continue to develop and strengthen the bank, in the framework of its strategy to conquer a strong position in the Bulgarian market”.
The completion of the transaction is subject to the approvals of the Central Bank and the Supervisory Financial Authority of Bulgaria, the Central Bank of Belgium and of the European Central Bank and the competent competition authorities.
Credit Suisse International acted as the exclusive financial advisor to EIF. Freshfields Bruckhaus Deringer is acting as international legal adviser and the Boyanov & Co as a local legal counsel of the EIB.
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