The privatisation strategy for the largest Romanian bank Banca Comerciala Romana (BCR – Romanian Commercial Bank) might be submitted to the new Government at the beginning of January, as the Privatisation Commission is to establish its last details these days.
“BCR privatisation strategy was rather controversial, but we managed to decide on its final structure and to have it ready for presentation by the first days of next year,” official sources told Ziarul Financiar. However, the new government has already announced that it intended to modify BCR privatisation strategy.
According to the above-quoted sources, the proposal aimed at BCR privatisation that is to be submitted to the new Executive will be based on selling a stake of almost 70% in the shares of the most powerful bank in Romania, of which only 35% to an institutional investor or group of investors.
The rest of stock, approximately 35%, is aimed at small investors, by means of direct purchases or public offers.
“The basic idea was to avoid the situation when, after privatisation, a certain investor would have held total control,” the above-quoted sources added. BCR estimated market value currently varies between 700 and 1,200 million dollars.
At present, BCR holds a market share of over 30%, both for credits granted to customers and for deposits attracted within the system. The bank, which has over 2.2 million customers, had net profit of 115 million dollars on the first ten months of the year.
BCR business plan for 2000 includes an annual net profit of 99 million dollars, while Merril Lynch, one of the privatisation consultants, estimated net profit of 109 million dollars.
The bank’s own capital at the end of September stood at 389.8 million dollars, while its share capital exceeded 350 million dollars.
For next year, along with finalising privatisation, the strategy built by the bank’s current managers involves the preservation of the leading position within the Romanian banking system, especially as to attracting and maintaining as customers economic units having complex activities.
Moreover, the expansion strategy also involves activities in the retail domain and the development of customer relations management.