Erste transfers BCR to Austrian LTD to improve image

Three years after privatisation, Austrian group Erste has put between it and BCR, the biggest bank in Romania, whose majority shareholder it is, two entities registered as limited companies recently set up in Austria, EGB Ceps Beteiligungen and EGB Ceps Holding, with the latter becoming the legal owner of the 69.3% in BCR.
Erste this way transfers its direct exposure to the BCR out of its portfolio.
The Austrians had not been allowed to make such a move in the first three years after privatisation, but the deadline expired last month, so that the Romanian State cancelled its post-privatisation monitoring.
The name change for BCR’s majority shareholder had not been operated at the Trade Registry Office yesterday yet.
Contacted by ZF, the officials of Erste said it was about a “formal change”.
“The change does not influence the existing corporate governance structure or the business strategy in any way, and is only a matter of internal reorganisation.” This is the official explanation for the move. Yesterday afternoon, the two limited liability companies were not showing up in the official structure of the Erste group, although the change was supposed to modify the shareholder structure of other subsidiaries in the region, as well. The Austrians have changed their holding company structure once before, that is last year.
The Erste officials were unwilling to reveal the value of the capital held by EBG Ceps Holding, the limited company currently controlling BCR, nor did they explain the reason for this change.
“I cannot describe it any other way than organisational streamlining. No effect on strategy. No effect on exposure. We maintain our exposure to Romania. Erste Group’s commitment to Romania/ BCR remains solid and unchanged,” said Ionut Stanimir, spokesman for Erste Group, adding there were no plans for the floatation of any of the two vehicles. .
Still, Petre Szel, chairman of Muntenia Invest, the manager of SIF Muntenia, says Erste has regrouped its business in a vehicle for tax and strategy reasons.