National Bank of Greece S.A. ('NBG') today entered into a definitive agreement with KBC Group ('KBC') for the divestment to KBC of its 99.91% stake in its Bulgarian subsidiary United Bulgarian Bank A.D. ('UBB') and its 100% stake in Interlease E.A.D. (the 'Transaction').
The agreed consideration for the Transaction amounts to €610 million. Before closing of the Transaction, UBB intends to make a €50 million dividend distribution to NBG, following approval of its Annual General Assembly. The purchase price represents a Transaction multiple of c. 1.1x P/BV(1), increasing NBG's pro-forma Q3 2016 CET1 ratio by c.100bps(2).
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The sale of UBB reaffirms NBG's management commitment to the successful implementation of the Bank's restructuring plan.
Leonidas Fragkiadakis, NBG CEO said: 'After almost 15 years of successful presence in Bulgaria, NBG divests from UBB and Interlease to deliver on its commitment to the shareholders and the European Authorities. The Transaction further strengthens NBG's position in terms of capital and liquidity, allowing for the redeployment of resources to support the Greek economic recovery. I am pleased that the new owner of UBB, KBC, a strong and reliable counter-party, will continue to grow and develop the bank, in line with its strategy to become a leader in the Bulgarian market.'
Closing of the transaction is subject to regulatory approval from the Bulgarian National Bank ('BNB') and the Financial Supervision Commission of the Republic of Bulgaria ('FSC'), authorisation by the National Bank of Belgium ('NBB') / the European Central Bank ('ECB') and anti-trust approval.
Credit Suisse International is acting as exclusive financial advisor to NBG. Freshfields Bruckhaus Deringer is acting as international legal counsel and Boyanov & Co as local legal counsel to NBG.
Note 1: Based on the Book Value of 30.09.2016 pro-forma for total dividend distribution by UBB of €183 million
Note 2: Impact on CET 1 ratio as of 30.09.2016, pro-forma for the sale of Astir Palace and the repayment of CoCos
National Bank of Greece SA published this content on 30 December 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 30 December 2016 18:15:10 UTC.