Great deal for Banc Post employees

Greek bank EFG Eurobank, the majority stakeholder in Banc Post, has strengthened its position in the Romanian bank by purchasing a further 5.34% in Banc Post from bank employees for about 6.1 million euros.

According to banking sources, the Greek shareholder offered a price of 7,000 ROL/share, almost four times the nominal value of one Banc Post share.

Banc Post was the second state-owned bank in Romania to be privatised after BRD. The resulting shareholder structure had been relatively heterogeneous until last year, when Eurobank bought a stake of 17% from Banco Portugues de Investimento for 23 million euros.

It was this continual fragmentation of the shareholding structure that pushed Eurobank to strengthen its position in the bank in order to be able to start a programme of investment and modernise its operations. The need for new investment is becoming increasingly visible amid tighter competition on the market.

Following finalisation of the purchasing offer submitted to shareholders, EFG will hold 58.59% in Banc Post. A further stake of 30% is owned by the five financial investment companies (SIFs), each having a share of 6%.

The other shareholders are GE capital, with 8.75%, over which EFG has first option in a sale, and the bank’s employees and pensioners who control 2.66%.

The price paid to the bank’s employees is higher than that offered to the Portuguese bank.

At the end of last year, the bank increased its share capital to some 29.6 million euros through the incorporation of reserves worth 12.9 million euros.