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Slovenia’s second biggest lender NKBM signs deal to buy state-owned Abanka for 511 mln euro

Slovenia’s second biggest lender NKBM signs deal to buy state-owned Abanka for 511 mln euro kajikawa [CC BY 3.0 (https://creativecommons.org/licenses/by/3.0)]

LJUBLJANA (Slovenia), June 21 (SeeNews) –  Slovenia’s sovereign holding company, SDH, said it has signed an agreement with the second biggest bank in the country, Nova Kreditna Banka Maribor (NKBM), for the sale of 100% of the country's third largest bank, Abanka, for a total consideration of 511 million euro ($576.6 million).

The value of the agreement includes a dividend in the amount of 67 million euro which was paid out to the seller in May, prior to the signing of the agreement, SDH, acting on behalf of the Slovenian government, said in a press release late on Thursday.

NKBM is owned by investment funds affiliated and managed by Apollo Global Management (80%) and the European Bank for Reconstruction and Development (20%), the statement added.

The closing of the transaction is subject to receiving all applicable authorisations and approvals from the relevant authorities, the statement noted.

“With today's execution of the sale and purchase agreement with the buyer of Abanka, Nova kreditna banka Maribor, SDH has satisfied all of the commitments given by the Republic of Slovenia to the European Commission with regard to the state aid,” the president of SDH’s management board, Igor Krzan, said.

“This historic moment is an incredible opportunity for us and Abanka to create a stronger combined bank, which is positive for the Slovenian economy. The combined bank will have improved access to customers in all segments nationwide and will support the competitiveness of the Slovenian banking sector,” the chairman of NKBM's management board, John Denhof, said.

A merger between Abanka and NKBM would create a bank that will hold around 22.5% of market share. Slovenia's largest bank, Nova Ljubljanska Banka (NLB), holds a market stake of around 23%.

($ = 0.8861 euro)

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