Sale of Czech eBanka to Raiffeisen International Nearing Completion

21. Juli 2006, 00:00

The deal between Raiffeisen International and PPF for the purchase of eBanka is nearing completion and could be sealed...

The deal between Raiffeisen International and PPF for the purchase of eBanka is nearing completion and could be sealed even Friday, banking sources say.

In early March, the PPF group confirmed speculations that talks were under way about the sale of eBanka.

Then PPF said it had decided to sell eBanka because several foreign investors had expressed interest in it and also because PPF already had one bank, PPF banka, and did not need two.

There were many candidates for eBanka, not only Raiffeisen, but also Italian banks UniCredit, Banca Intesa, and Banco Popolare di Verona, and British HSBC. Czech bank CSOB had also been interested in eBanka in the past.

According to unofficial information, PPF is selling eBanka for CZK 3 billion (EUR 105.6 million). The original estimates of the price were CZK 4 billion.

PPF will most probably use the proceeds from the sale to extend its operations in Russia, China and Kazakhstan.

eBanka is the 11th largest bank on the Czech market.

It made a profit of CZK 10.5 million in 2005, after three years in the red.

eBanka has 860 staff. Some 111,000 people have an account at the bank and another 364,000 use some of its services.

After the transaction, Raiffeisenbank could rise to the fifth place among banks on the Czech market.

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