Italians to pay for West Bank next week

Italian banking group Cardine Gruppo has received an authorisation from the Italian authorities to take over Arad-based West Bank. Cardine Gruppo is to pay for the shares next week.

According to banking sources, the Italians requested the management team at West Bank to summon a General Assembly of Shareholders (AGA) as soon as possible, so that the new Management Board of the bank can be designated.

The General Assembly of Shareholders is also supposed to approve the investment and development plan for the next three years.

Cardine Gruppo at the end of May this year purchased a 75 percent stake in West Bank, paying 11.7 million dollars. The National Bank of Romania (BNR) approved this transaction in June.

The Italians pledged to increase the share capital of West Bank from 186 billion lei, which is now, to 500 billion lei. One of the contract’s provisions stipulated that the bank should maintain the current executive management team, the name and the head office.

Cornel Pirtea has been the bank’s chairman since 1996, when the bank was established. Previously, Cornel Pirtea was the director of the Arad-based branch on the National Bank of Romania.

Cardine Gruppo is a holding comprising nine banks and currently ranks ninth in Italy as for the net assets (38.7 billion euros) and the number of subsidiaries (777). Cardine Gruppo posted 293 million euros in net profit at the end of last year.

Arad-based West Bank has already signed financing programmes for the next five years with Cardine Gruppo.