Sberbank plans to ink legally binding VBI purchase agreement by end-July - Gref
MOSCOW. July 15 (Interfax) - Sberbank of Russia is planning to sign a legally binding agreement to purchase the Eastern European division of Oesterreichische Volksbanken AG - Volksbank International before the end of this month, Sberbank chief German Gref said during a Friday press conference.
"We will be striving to sign it before the end of July," Gref said.
Down the road, Sberbank plans to use VBI as a platform for acquiring other banks in the region, Gref noted.
"The size and technology of this platform is appropriate for creating an international group and using it for future acquisitions in Central and Eastern Europe," he said.
As reported, Sberbank announced late Thursday evening that it had reached agreement on the main terms for the acquisition of Oesterreichische Volksbanken International's (VBI) East European division, and that the pertinent document had been signed that by representatives of Sberbank and all VBI shareholders in Vienna.
The parties will work to close the deal before the end of this year, Sberbank said in a statement. The terms of the acquisition will not be announced until legally binding documents have been signed.
As expected, the largest of VBI's divisions - the one in Romania - is not part of the deal.
VBI is represented in the Czech Republic, Slovakia, Hungary, Croatio, Serbia, Bosnia and Herzegovina, Slovenia, Romania, and Ukraine. The combined assets of these banks stood at EUR 13.9 billion at the end of March, with the bulk - EUR 4.7 billion - held by the Romanian bank, which Sberbank does not need. VBI's credit portfolio is EUR 9.9 billion, its deposit volume EUR 5.2 billion, and its profits for the first quarter of this year EUR 102.5 million.
VBI has cut the number of its offices from 556 to 485 over the last six months, and the number of its employees from 5,400 to 5,300.
Sources said recently that the deal could cost more than EUR 700 million ($1 billion).
The purchase negotiations were first reported at the end of last year. Oesterreichische Volksbanken is selling off assets so as to return to the government financing received during the crisis period, as well as to increase capital.
Oesterreichische Volksbanken owns 51% of VBI, the German banks DZ Bank and WGZBank 24.5%, and the French bank Banque Populaire Caisse d'Epargne the same amount. In Oesterreichische Volksbanken itself, 58% is owned by local 'people's banks' (Voksbanke), and 25% by DZ Bank.
