National Bank of Greece signed agreement to purchase a 46% stake in Turkey’s Finansbank from Fiba Holding and Fiba Group companies for US$2.8 billion (€2.3 billion). The details of the agreement are as follows: NBG will pay US$2.3 billion for the ordinary shares and US$451 million for the 100 founder shares. NBG will also make a call to minority shareholders to increase its stake in the bank over 50%. If NBG cannot increase its share over 50% with the call, it will buy additional shares from Fiba Holding and Fiba Group to this end. After the transaction is completed, Fiba Group will retain its 9.68% stake in the bank and Finansbank management will remain in place.
Fiba Holding will purchase 100% of Finansbank International Holding shares held by Finansbank at US$600 million, at the date of transaction. Finansbank International owns 41.81% share in Finansbank Romania, as well as other financial companies in Romania, Russia, The Netherlands, and Switzerland. Fiba Holding will retain its operations abroad, excluding Malta. Meanwhile Finansbank will buy Finansbank Malta from Finans International, at US$48 milllion
Finansbank companies Finans Yatirim (investment company), Finans Leasing (leasing company), Finans Portfoy Yonetimi (portfolio management company) Ibtech (technology company) will also be transferred to NBG under the deal. The share transfer is subject to legal approvals and the deal is expected to be closed in July.
The deal is the largest overseas investment by a Greek company as well as being a major deal between historical rivals Turkey and Greece. Finansbank’s net income rose by 68% year-over-year to US$349 million last year. Finansbank is Turkey’s ninth largest bank with US$8.1 billion assets size, as of end-September, and has 220 branches in Turkey . As for the NBG, it is the largest financial group of Greece, and has a notable presence in South Eastern Europe.