June 4 (SeeNews) - Serbian diversified conglomerate MK Group is considering the purchase of banks in Southeast Europe (SEE), the president of the group, Miodrag Kostic, has said.
"Currently, MK Group is considering multiple acquisition options in the region's banking sector and it will carry out a transaction if it obtains the conditions and the price it expects," Kostic said in a video file posted on the website of news agency Tanjug on Sunday.
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MK Group plans to grow in both the banking and hotel sectors, Kostic added.
The holding company aims to consolidate a number of banks in the SEE region and to implement the know-how it has in the corporate segment and in the digitalisation process, Kostic explained.
In July 2016, MK Group purchased the shares held by minority owners in AIK Banka and delisted the lender from the Belgrade Stock Exchange. Greece's Alpha Bank said in April 2017 it agreed to sell the entire share capital of its Serbian subsidiary to MK Group.
According to Serbian media reports, the local AIK Banka is also interested in the acquisition of Serbian blue-chip lender Komercijalna banka [BEL:KMBN].
In November, the European Bank for Reconstruction and Development associate director Aleksandra Vukosavljevic said the EBRD remains committed to the privatisation of Komercijalna via the capital market, but as a minority shareholder it does not have the tools to make the government choose this option. The EBRD sold its 7% stake in the capital of Cyprus-based catch-all vehicle for the agricultural assets of Serbian conglomerate MK Group in February 2017.
GORENJSKA BANKA ACQUISITION
Slovenian lender Gorenjska Banka said last month that AIK Banka, owned by MK Group, has increased its shareholding in it from 24.66% to 25.22%. According to the most recent data published on the Slovenian lender's website, business group Sava controls 37.65% of the bank, while AIK holds 32.98%.
As of today, AIK Banka owns about 33% shareholding interest in Gorenjska banka and holds 61% of its voting rights, Kostic said in the video file. "Therefore, given the voting rights, we hold a majority stake in Gorenjska banka."
Taking control of the management of Gorenjska banka was the ultimate objective of the takeover bid for the Slovenian lender, launched at the end of 2017, he added.
The Serbian lender became the second largest shareholder in Gorenjska Banka with a 13.9% stake by investing almost 13 million euro in a share capital increase in January 2016, which the Slovenian lender needed to meet central bank requirements.
CONSOLIDATION AND DIGITALISATION
Both the hotel industry and the banking sector are in the process of consolidation across SEE, as there has been too much investment in the hotel sector and the maturities of extended loans have been too short for such long-term projects, Kostic noted.
"The same has happened with banks. There are too many banks. People jumped into the banking business without having the necessary know-how and expertise," Kostic added.
The way banks and hotels operated in the past is no longer viable, the president of MK Group noted.
MK Group sees significant investment opportunities in the banking sector, as the digitalisation process brings optimisation of costs, while some banks are not prepared to develop it.
AIK Banka has the needed efficiency and a wide presence in the corporate segment and could develop in the entire SEE region, Kostic said.
"We are predominantly a corporate bank. A lender such as AIK Banka is needed in every country."
INVESTMENTS IN HOTEL INDUSTRY
MK Group has a significant interest in the hotel industry and expects the sector to become one of its most important segments in the future, Kostic said.
"Our goal are hotels with at least 150 rooms. We wish to invest in brownfield projects and we avoid greenfield projects."
MK Group is interested in projects located on the Adriatic coast, in Montenegro, Croatia and Slovenia, but also in city hotels, Kostic noted.
"At this moment, the spa tourism is not our priority, as it is very specific."
Established in 1983, privately-held MK Group has 29 companies within its holding active in agribusiness, wholesale, real estate and banking.
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