Greece’s NBG sells United Bulgarian Bank, Interlease to KBC

The National Bank of Greece said late on Friday it has entered into a definitive agreement with Belgium’s KBC Group for the divestment to KBC of its 99.91% stake in its Bulgarian subsidiary Un

ited Bulgarian Bank and its 100% stake in leasing company Interlease, SeeNews reported.

“The agreed consideration for the transaction amounts to 610 million euro ($642 million),” NBG said in a statement.

Before closing of the transaction, UBB intends to make a 50 million euro dividend distribution to NBG, following approval of its annual general assembly, it added.

“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),” NBG also said.

The sale of UBB reaffirms NBG’s management commitment to the successful implementation of the bank’s restructuring plan, NBG noted

“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,” the statement quoted NBG CEP Leonidas Fragkiadakis as saying.”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 and Bulgaria’s Financial Supervision Commission, authorisation by the National Bank of Belgium/ the European Central Bank and anti-trust approval.

See more at: https://seenews.com/news/greeces-nbg-sells-united-bulgarian-bank-interlease-to-kbc-552854#sthash.nhPaFtbU.dpuf