-Erste Group to acquire stake in Romanian BCR unit.
Global Banking News - 16 September 2011
Austrian bank Erste Group Bank AG (EBS.VI) has said that it is set to acquire 24.12 percent stake in its unit Banca Comerciala Romana SA (BCR) (BCR.YY) for about EUR435m in cash and stock, after reaching an agreement with four of the five minority shareholders, es.
The bank has reached an agreement with SIF Banat Crisana, SIF Transilvania, SIF Muntenia and SIF Oltenia to buy 2.62 billion shares in BCR, funding the transaction from retained earnings for cash part, and issuing 16.1 million new shares using existing capital for share-swap. The deal is subject to the necessary approvals.
Following the deal, Erste Group's stake in BCR will increase to 93.52 percent from the 69.4 percent stake it held previously, while the participating SIF's will hold up to one percent stake in Erste Group after the transaction.
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