The transaction also encompasses the acquisition of other entities within OTP Romania Group, including OTP Asset Management SAI and OTP Leasing Romania, the buyer said in a statement filed with the Bucharest Stock Exchange.
Banca Transilvania and OTP Bank Romania will both operate as separate entities until the transaction is finalized. BT Financial Group will initiate the necessary legal procedures to obtain approvals from the competent authorities for integrating the acquired entities.
The selling price is below the net asset value of OTP’s Romanian subsidiaries, leading to an after-tax loss of 59.5 billion forints ($165.1billion/153.2 million euro) at the group’s consolidated level, which has been booked in the fourth quarter of 2023, OTP Bank said in a separate press release on Friday.
The financial closing of the transaction is anticipated in 2024, following necessary regulatory approvals, according to the seller.
OTP Bank Romania swung to an after-tax profit of 18 billion Hungarian forints ($50.9 million/47.7 million euro) in the first nine months of last year, from a loss of 1 billion forints in the corresponding period of 2022, OTP Group said in November. The bank had a network of 97 branches and 1,826 employees at the end of September.
Banca Transilvania [BSE:TLV] said in November that its net profit rose by 29% year-on-year in the first nine months of 2023, reaching 1.859 billion lei ($402.3 million/373.5 million euro). The bank operated 513 branches as at end-September.
Banca Transilvania topped the list of Romanian lenders in 2022, with assets totalling 133.968 billion lei and a corresponding market share of 19.11%, the country's central bank said in its annual report for 2022. OTP Bank Romania ranked tenth, with assets totalling 19.888 billion lei and a market share of 2.84%.
Banca Transilvania shares traded flat at 24.9 lei as at 1503 CET on Friday on the Bucharest Stock Exchange.
