February 28 (SeeNews) - French lender Societe Generale has agreed to sell its bank in Montenegro to Hungarian peer OTP Bank, and its North Macedonian unit Ohridska Banka [MSE:OHB] to Austria'a Steiermaerkische Sparkasse, it said on Thursday.
By exiting Eastern Europe, Societe Generale aims to lift its profitability, it said in a statement.
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In North Macedonia, Societe Generale agreed to sell its 74.53% stake in Ohridska Banka for 2.42 billion denars ($44.9 million/39.4 million euro), or 6,298.79 denars per share, Ohridska Bank said in a filing to the Macedonian Stock Exchange.
Steiermaerkische Sparkasse will launch a takeover bid for 100% of Ohridska Banka at the same price per share, which values the lender at 3.25 billion denars. The takeover bid will be considered successful if holders of at least 74.53% of Ohridska Banka's shares accept the offer.
Ohridska Banka shares closed at a price of 6,850.0 denars on the Macedonian Stock Exchange on Wednesday, bourse data shows.
The transaction is subject to approval from the North Macedonian central bank.
In a separate statement on Thursday, OTP Bank said that it has agreed to acquire a 90.56% in Societe Generale banka Montenegro - the country's fourth largest lender.
Societe Generale did not disclose the value of the transactions in its own statement, but said that upon their completion they would boost the group's core equity tier one (CET1) ratio by around two basis points and reduce the group's risk weighted assets by around 1.1 billion euros.
The transactions had a combined impact of 66 million euro, in the exceptional charge of 241 million euro published in Societe Generale's financial statement for 2018, the lender also said.
The closing of the transaction for Societe Generale Montenegro and the launch of the mandatory takeover for Ohridska Banka Societe Generale by Steiermaerkische Sparkasse are expected in the coming months, subject to receipt of clearances from the relevant banking, antitrust and market authorities. The closing of the transaction for Ohrisdka Banka Societe Generale is subject to the successful completion of the mandatory takeover by Steiermaerkische Sparkasse.
Societe Generale Montenegro will soon be part of the collaboration agreement which was signed between SG and OTP Bank that includes the provision of mutual services in various fields, such as investment banking, financing cash, capital markets and liquidity management, the statement added. The collaboration agreement includes Hungary as it will soon have Croatia and Bulgaria. Albania, Moldova and Serbia on board, once the transactions closed.
“These transactions are in line with the divestment process already undertaken in the Balkan region. They confirm the group’s ability to execute its disposal plan in accordance with its roadmap and refocus its international retail banking activities on geographies where it has critical size and high potential for synergies," Philippe Heim, deputy CEO of Societe Generale Group, said in the statement.
Earlier this month, OTP Bank agreed to acquire an 87.85% stake in Moldova's Mobiasbanca from Societe Generale. Last year, Societe General agreed to sell it units in Bulgaria, Albania and Serbia to OTP Bank.
(1 euro = 61.48 denars)