SOFIA (Bulgaria), January 4 (SeeNews) - Hungary's OTP Bank has increased the capital of its Bulgarian subsidiary DSK Bank by 1.17 billion levs ($683 million/600 million euro) to ensure DSK's capital adequacy following acquisition of local peer Societe Generale Expressbank, official documents show.
DSK Bank's capital was hiked to 1.33 billion levs, with OTP Bank having subscribed for all 117,349,800 new DSK Bank shares of 10 levs in par value each, according to documents entered into Bulgaria's commercial register last week.
In August, OTP agreed to acquire the Albanian and Bulgarian units of French banking group Societe Generale. In Bulgaria, OTP is acquiring - through DSK - 99.74% of Societe Generale Expressbank and its units Societe Generale Factoring, Sogelease Bulgaria and Regional Urban Development Fund, as well as direct control over insurer Sogelife Bulgaria.
DSK Bank received a preliminary approval for the deal from the Bulgarian National Bank (BNB) in November, followed by approvals from the Financial Supervision Commission and the Commission for Protection of Competition in December.
DSK Bank, a wholly-owned subsidiary of OTP Bank, was Bulgaria's second largest lender by assets at the end of November, while Societe Generale Expressbank was the seventh biggest, according to the latest available data from BNB.
(1 euro = 1.95583 levs)