Piraeus Bank closes on Banca Tiriac

Greek group Piraeus Bank is the last bidder left in the race for the main stake in Banca Tiriac, according to sources close to the talks. The deal has been long awaited by the entire banking system. The Greek group has already concluded the due-diligence report.

Although few details were revealed about the transaction, which started in mid 2003, as the participants were quite discreet, German group HVB Bank and Austria-based Volksbank were also interested in buying the main stake in Banca Tiriac.

Businessman Ion Tiriac, owner of the group that holds over 73% in the bank, announced early last year he would sell some of the shares he controlled in the institution. He was even quoted as saying he had information that at least 10 investors were interested in the transaction. The players on the banking market eagerly expect a new strategic investor in Banca Tiriac, as it ranks among the last Romanian banks that can be sold. Beside a network comprising over 55 branches and a very well-organised IT system, the purchaser will manage from the very beginning the accounts of more than 500,000 clients.

Banca Tiriac posted operating profit worth 25.4 million euros in the first nine months of 2003, up about 61% from 2002, according to the bank’s officials.

The bank’s assets accounted for 425 million euros at the end of September, 2003, up 11% from December 31, 2002, while the equity reached 50.8 million euros, 62.4% more than in the similar period of 2002.

The acquisition by the Greek group of the main stake in Banca Tiriac would not come as a surprise, especially since, at the end of last year, the Piraeus Bank officials in Bucharest said they were planning to expand on the Romanian market.
oana.nuta@zf.ro