Having already received the necessary approval of the Central Bank of Slovakia and the Anti-Trust Commission for KBC to acquire full ownership(100%) of Istrobanka and Istro Asset Management, BAWAG P.S.K. and KBC closed the sale-purchase of ISTROBANKA today. The acquisition of ISTROBANKA, the tenth largest bank in terms of assets in Slovakia, was announced on 20 March 2008 and the deal valued the bank at 350 million euros, 3.5 times its book value.
KBC was already present in Slovakia through its subsidiary SOB Bank, and the consolidation of ISTROBANKA and SOB Bank will create the fourth largest banking operation in Slovakia, with a market share of approximately 10%.
In the coming months, both ISTROBANKA and SOB Bank will fully concentrate on preparations for the introduction of the euro and on the merger of both banks (second half of 2009).
Commenting on the deal, André Bergen, KBC Group CEO, had this to say: 'Together, SOB and ISTROBANKA will form the fourth largest banking operation in the country. KBC has now strengthened its position in the attractive and increasingly consolidating Slovakian market, one which offers enormous potential for the further penetration of banking and insurance products. The future merger of both banks will offer considerable cross-selling potential in both retail and corporate banking and lead to economies of scale, thus creating significant value and benefits for shareholders, employees and customers."
Daniel Kollar, CEO of SOB Bank and Country Manager of SOB Group in Slovakia added:'ISTROBANKA is a quality bank, with a professional management team, highly experienced and dedicated staff, and a clear commercial strategy and business plan that focuses on organic growth. Since the announcement of the acquisition a few months ago, we have been working to carefully and efficiently prepare for the merger, which will create a single legal entity and uniform processes, systems and services.
In the months to come, we will work together to strengthen and consolidate our fourth place in the Slovakian market. Our customers will be able in the near future to capitalise on this close co-operation, which will bring them new benefits and opportunities mainly in the area of bancassurance.'
David Roberts, CEO of BAWAG P.S.K. said: "We are very pleased about KBC's investment in Istrobanka, which represents the best avenue for Istrobanka's future growth and development. This transaction brings material benefit to the customers, employees and shareholders of Istrobanka. KBC is a committed, long-term owner, who will bring real value to Istrobanka, whilst BAWAG P.S.K. will re-invest the sale proceeds in supporting it's ambitious growth agenda inside and outside of Austria.
KBC Group (www.kbc.com)
KBC is the second largest bancassurer in Belgium and a top financial player in Central & Eastern Europe and Russia. Its headquarters are located in Brussels (Belgium), the heart of Europe.
The KBC group is present in more than 35 countries worldwide, employs 57 000 staff (nearly 32 000 of whom in Central and Eastern Europe and Russia) and caters for 11 million customers (some 8 million in Central and Eastern Europe).
KBC GROUP NV is listed on NYSE EURONEXT and the Luxembourg Stock Exchange.
KBC is a multi-channel bancassurer with a geographic focus on Europe, catering mainly for retail and private banking customers and small and medium-sized enterprises. Besides focusing on providing retail and private bancassurance services (via bank branches, insurance agents/brokers and the Internet), KBC is active in asset management, and in the field of corporate banking, leasing, factoring, re-insurance, insurance, private equity and project and trade finance in Belgium, Central and Eastern Europe and elsewhere (mainly in Europe).
Moreover, it is active in the European debt capital markets, has a solid position in the domestic cash equity markets and is a prominent niche player in a number of global derivatives markets.
Besides its leading position in the Belgian and Central and Eastern European markets, KBC also has a private banking network in eight Western European countries.
Over the past decade, KBC has built up a strong presence in many of the countries that joined the EU on 1 May 2004 (Poland, Hungary, the Czech and Slovak Republics). More recently, it has made acquisitions in Bulgaria (DZI Insurance, DZI Invest and EIBANK), Romania (KBC Securities Romania, Romstal Leasing and INK Insurance Broker), Russia (Absolut Bank), Serbia (KBC Banka and Senzal, now KBC Securities AD Beograd, Hipobroker, now KBC Broker, and Bastion, now KBC Securities Corporate Finance) and Slovakia
(Istrobanka). These acquisitions are consistent with KBC's Central and Eastern European expansion criteria, and capitalise on the region's economic convergence with Europe and potential for the further penetration of banking and insurance products.
KBC was already present in Slovakia through its subsidiary SOB Bank, and the consolidation of ISTROBANKA and SOB Bank will create the fourth largest banking operation in Slovakia, with a market share of approximately 10%.
In the coming months, both ISTROBANKA and SOB Bank will fully concentrate on preparations for the introduction of the euro and on the merger of both banks (second half of 2009).
Commenting on the deal, André Bergen, KBC Group CEO, had this to say: 'Together, SOB and ISTROBANKA will form the fourth largest banking operation in the country. KBC has now strengthened its position in the attractive and increasingly consolidating Slovakian market, one which offers enormous potential for the further penetration of banking and insurance products. The future merger of both banks will offer considerable cross-selling potential in both retail and corporate banking and lead to economies of scale, thus creating significant value and benefits for shareholders, employees and customers."
Daniel Kollar, CEO of SOB Bank and Country Manager of SOB Group in Slovakia added:'ISTROBANKA is a quality bank, with a professional management team, highly experienced and dedicated staff, and a clear commercial strategy and business plan that focuses on organic growth. Since the announcement of the acquisition a few months ago, we have been working to carefully and efficiently prepare for the merger, which will create a single legal entity and uniform processes, systems and services.
In the months to come, we will work together to strengthen and consolidate our fourth place in the Slovakian market. Our customers will be able in the near future to capitalise on this close co-operation, which will bring them new benefits and opportunities mainly in the area of bancassurance.'
David Roberts, CEO of BAWAG P.S.K. said: "We are very pleased about KBC's investment in Istrobanka, which represents the best avenue for Istrobanka's future growth and development. This transaction brings material benefit to the customers, employees and shareholders of Istrobanka. KBC is a committed, long-term owner, who will bring real value to Istrobanka, whilst BAWAG P.S.K. will re-invest the sale proceeds in supporting it's ambitious growth agenda inside and outside of Austria.
KBC Group (www.kbc.com)
KBC is the second largest bancassurer in Belgium and a top financial player in Central & Eastern Europe and Russia. Its headquarters are located in Brussels (Belgium), the heart of Europe.
The KBC group is present in more than 35 countries worldwide, employs 57 000 staff (nearly 32 000 of whom in Central and Eastern Europe and Russia) and caters for 11 million customers (some 8 million in Central and Eastern Europe).
KBC GROUP NV is listed on NYSE EURONEXT and the Luxembourg Stock Exchange.
KBC is a multi-channel bancassurer with a geographic focus on Europe, catering mainly for retail and private banking customers and small and medium-sized enterprises. Besides focusing on providing retail and private bancassurance services (via bank branches, insurance agents/brokers and the Internet), KBC is active in asset management, and in the field of corporate banking, leasing, factoring, re-insurance, insurance, private equity and project and trade finance in Belgium, Central and Eastern Europe and elsewhere (mainly in Europe).
Moreover, it is active in the European debt capital markets, has a solid position in the domestic cash equity markets and is a prominent niche player in a number of global derivatives markets.
Besides its leading position in the Belgian and Central and Eastern European markets, KBC also has a private banking network in eight Western European countries.
Over the past decade, KBC has built up a strong presence in many of the countries that joined the EU on 1 May 2004 (Poland, Hungary, the Czech and Slovak Republics). More recently, it has made acquisitions in Bulgaria (DZI Insurance, DZI Invest and EIBANK), Romania (KBC Securities Romania, Romstal Leasing and INK Insurance Broker), Russia (Absolut Bank), Serbia (KBC Banka and Senzal, now KBC Securities AD Beograd, Hipobroker, now KBC Broker, and Bastion, now KBC Securities Corporate Finance) and Slovakia
(Istrobanka). These acquisitions are consistent with KBC's Central and Eastern European expansion criteria, and capitalise on the region's economic convergence with Europe and potential for the further penetration of banking and insurance products.
