One more month of negotiations for 25% in BCR

The European Bank for Reconstruction and Development (EBRD) is hoping to conclude the negotiations for buying a stake in Banca Comerciala Romana (Romanian Commercial Bank – BCR) in September, Hildegard Gacek, EBRD’s director in Romania told Ziarul Financiar.

EBRD and IFC (International Finance Corporation), World Bank’s investment arm will buy 25% in BCR plus two more shares. The stake will allow them to control the decision-making process in the bank. “The negotiations are ongoing. We want to divide the shares equally with the IFC,” Gacek says. IFC had allotted $75 million as early as at the end of last year to finance the purchase of at least 5% in BCR. Maintaining this amount for 12.5% in BCR would be too little, considering the reported value of the bank, i.e. more than one billion dollars.

Hildegard Gacek says EBRD has not set a cap on this investment. “We’ve got enough money to buy the BCR shares. At any rate, it will be the biggest deal for us this year,” Gacek explains. The transaction with EBRD and IFC will provide a clue about the price, which is very important for the main privatisation stage, that is the sale of the controlling interests to a strategic investor.

The bank’s employees, who have a stake of up to 8% set aside for them, will have to pay at least 10,000 ROL (the par value of a BCR share) as decided by the Government. It remains to be seen how will the employees and retired employees of the bank come up with the necessary money to buy the entire 8%. The at least 51% reserved for the strategic investor will be put together by the Privatisation Authority (APAPS) from the partial or full stake still state-held, in addition to the total or partial interests repurchased from EBRD and IFC.

The latest privatisation strategy version endorsed by the Government stipulates the minimal sale price for each share of the 51% in BCR may not be lower than the price per share paid for the partial or total redemption of the shares from EBRD and IFC. razvan.voican@zf.ro