December 6 (SeeNews) - Hungary's OTP Group said on Monday it has signed a contract with Alpha International Holdings Single Member, a fully-owned subsidiary of Greece's Alpha Bank Group, to buy 100% interest in the banking group's unit in Albania, Alpha Bank SH.A., for 55 million euro ($62.1 million).
The acquisition is expected to be completed by the end of the second quarter of 2022, after receiving the necessary regulatory approvals, OTP said in a press release.
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"With a total asset-based market share of almost 5%, Alpha Bank is the 8th largest bank on the Albanian banking market, and as a universal bank it has been active in the retail and corporate segment," OTP said.
The transaction will create a banking group in Albania with a market share of about 11% based on assets, Alpha Bank Group said in a separate statement.
"The consideration has been agreed at Euro 55 million representing a 0.74x P/BV multiple. The Transaction is capital accretive for the Group and is fully aligned with the Group’s commitment to focus its operations on its core markets," Alpha Bank said.
In 2019, OTP Group acquired 100% interest in the Albanian unit of France's Societe Generale, which was renamed to Banka OTP Albania.
($ = 0.8857 euro)