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Eurobank Bulgaria seeks shareholders nod to absorb Piraeus Bank Bulgaria

Author Mario Tanev
Eurobank Bulgaria seeks shareholders nod to absorb Piraeus Bank Bulgaria Author: Lukas Plewnia. License: Creative Commons, Attribution-ShareAlike 2.0 Generic.

SOFIA (Bulgaria), August 9 (SeeNews) - Eurobank Bulgaria, which operates under the Postbank brand, said that it is seeking approval from its shareholders to absorb its unit Piraeus Bank Bulgaria.

Eurobank Bulgaria shareholders will vote on the proposal at a general meeting scheduled for September 11, the lender said earlier this week in an invitation for the meeting.

Eurobank Bulgaria wrapped up the acquisition of Piraeus Bank Bulgaria from Greek lender Piraeus in June.

The two lenders hold a combined market share of 11.5% in terms of retail banking, and 9% regarding wholesale banking, making them the fourth largest player on both segments, according to data disclosed by the competition regulator earlier this year.

In November 2018, Eurobank signed an agreement to acquire Piraeus Bank Bulgaria. The value of Piraeus Bank Bulgaria's shares is 75 million euro ($83.9 million) and the transaction will have limited effect on Eurobank's common equity tier 1 capital, Eurobank Bulgaria said at the time.

At the end of June, Piraeus Bank Bulgaria was the country's 11th largest lender by assets, while Eurobank Bulgaria was fifth, according to the most recent central bank data.

($ = 0.8935 euro)