Home Stock & SharesBanks KBC and OTP bid for Bulgarian unit of National Bank of Greece

KBC and OTP bid for Bulgarian unit of National Bank of Greece

by Jonathan Adams

Belgian bank KBC and Hungarian lender OTP Bank have offered to acquire United Bulgarian Bank (UBB), the Bulgarian subsidiary of National Bank of Greece (NBG), according to banking industry sources.

NBG is seeking to sell UBB, Bulgaria’s fourth largest lender, as part of its restructuring plan agreed with banking regulators to boost its capital position.

It is also seeking to sell off its National Insurance arm.

“The data room is now closed. There are two offers, one by KBC and one by OTP,” one of the sources said.

“A sale to one of the two bidders is likely to be agreed by the end of the year,” a second source said.

UBB had a book value of 1.32 billion levs (£572.74 million) at the end of September, central bank data showed. Its chief executive, Stilian Vatev has said that the bank’s core capital adequacy ratio will stand at 20 per cent of assets after the dividend payment from 29 per cent before and will achieve a better level of managed capital.

OTP chief executive Sandor Csanyi said last month the bank was looking at acquisition opportunities and would wrap up at least one deal within the next three months.

A KBC spokeswoman said the Belgian group was looking for opportunities in its core markets and Bulgaria was such a market, but declined to comment on whether it had made a bid for UBB.

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