Agri Europe to bid for 17% stake in Addiko Bank in May

In March, when AEC first unveiled its plan, it noted that it aims to launch an all-cash voluntary offer seeking to buy up to 3,315,344 Addiko Bank shares, equivalent to 17% of its equity, at a price of 17.50 euro ($18.76) per share on a cum dividend basis, indicating that any declared dividends in the interim would be deducted from this price.

The bid values the bank at 341 million euro.

Pursuant to the Austrian takeover act, the takeover bid will be announced between May 13 and May 16, the Commission said.

AEC previously said it had also agreed to acquire 1,947,901 Addiko shares, or an ownership stake of 9.99%, from Infenity Management Limited, which is a company related to AEC. Thus, the bidder noted, it aims to acquire in total up to 5,263,245 Addiko Bank shares corresponding to 26.99% of the bank's share capital.

A potential deal would be the latest in a string of acquisitions in the banking sector by AEC, owned by Serbian businessman Miodrag Kostic, in recent years, reflecting an effort to bolster its presence across the Balkans.

Kostic's business journey began more than two decades ago in Serbia, mainly in the sugar and meat industries and agriculture. His business has since diversified to include banking, renewable energy, and tourism.

Addiko says on its website that as of April 30, its largest single shareholder was AEC with 9.99%, followed by DDM Invest III AG (Switzerland) with 9.90%, Serbian financial services company Alta Pay Group with 9.63%, US-based Wellington Management Group LLP with 8.85% and EBRD with 8.40%. The remainder belongs to smaller shareholders.

In early April, Alta Pay Group of Serbian businessman Davor Macura said it had bought 30% of Addiko Bank, planning to become one of the leading players in the banking sector in former Yugoslavia.

Alta Pay Group also includes Serbia's Alta Banka, which was established in 1979. The group is a regional payment service provider with 4,100 locations across Serbia and Montenegro and is Western Union's strategic partner for the two countries.

At the same time, AEC's financial footprint in the region includes lender AIK Banka, Eurobank Direktna and financial services firm M&V Investments in Serbia, and lender Gorenjska Banka and GB Leasing in Slovenia.

According to a Monday report by regional news outlet eKapija, AEC has declared that it is not acting together with Alta Pay Group.

Addiko Bank emerged from the eastern European business of failed Austrian lender Hypo Alpe Adria and was acquired by private equity firm Advent International and the European Bank for Reconstruction and Development (EBRD) in 2014.

Addiko, which listed on the Vienna stock exchange in 2019, is active in Bosnia and Herzegovina, Croatia, Montenegro, Serbia and Slovenia.

Its shares traded flat at 18.5 euro by 10:00 CET on Tuesday after gaining 2.78% on Monday.

($ = 0.933 euro)