Hungary’s OTP submits bid on Romania’s CEC

17. Juli 2006, 00:00

Hungary’s OTP Bank submitted on Monday a binding bid for the purchase of a 69.9 per cent share stake in the...

Hungary’s OTP Bank submitted on Monday a binding bid for the purchase of a 69.9 per cent share stake in the Romanian Savings Bank (CEC). The bidding deadline for the state-owned CEC was set at 14:00 GMT on Monday. It was expected that at least other 3 banks to also submit their bid, Austrias Raiffeisen, Greeces EFG Eurobank and National Bank of Greece.

CEC’s (Casa de Economii si Consemnatiuni) market share is 4.3 per cent based on its EUR 1.53 billion (USD 1.94 billion) total assets on December 31, 2005, its shareholders equity is EUR 158 million (USD 198 million) and its after-tax profit is EUR 1 million (USD 1.25 million). With nearly 1,400 branches, the Romanian Savings Bank serves around 3.1 million customers. The financial institution had deposits of EUR 1.31 billion (USD 1.64 billion) and loans of EUR 511.9 million (USD 641.1 million) at the end of last year.

OTP’s letter of intent to the Ministry of Public Finance was submitted on 31 August, 2005, and the indicative offer on 21 October, 2005. The Romanian government modified the stake on offer in June 2006 to 69.9 per cent, for which OTP Bank submitted its binding bid on Monday.

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