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Piraeus to keep part of Bulgarian unit's assets after sale to Eurobank Ergasias

Author Mario Tanev
Piraeus to keep part of Bulgarian unit's assets after sale to Eurobank Ergasias cozyta/

SOFIA (Bulgaria), February 25 (SeeNews) - Piraeus Bank Bulgaria said that its current majority owner - Greece's Piraeus Bank - will keep part of the Bulgarian lender's assets after the agreed sale of the Sofia-based bank to Greek peer Eurobank Ergasias.

To that end, Piraeus Bank Bulgaria will spin off into a new company - Piraeus Real Estate - the assets that its parent company will keep, and will transfer its ownership to Greece's Piraeus Bank, data from the Bulgarian lender's shareholders meeting invitation, published last week, shows.

The assets were excluded from the deal with Eurobank Ergasias agreed in November, Piraeus Bank Bulgaria said.

Eurobank Ergasias said in November that it has agreed to acquire Piraeus Bank's stake in Piraeus Bank Bulgaria for a consideration of 75 million euro ($85.2 million).

The carved-out assets will include all real estate obtained by Piraeus Bank Bulgaria via enforcement over securities provided by its debtors until the acquisition by Eurobank Ergasias is completed, the documents show. In addition, "certain other properties, equipment, agreements, employees and disputes" will be transfer to Piraeus Real Estate.

Piraeus Bank Bulgaria will complete the spinoff once it receives approval from its shareholders and the Bulgarian National Bank.

Piraeus Bank Bulgaria's shareholders will vote on the proposal at a meeting scheduled for March 27.

Piraeus Bank Bulgaria was the country's tenth largest lender in terms of assets at the end of 2018, according to central bank data.

($ = 0.8804 euro)