Belgium-based KBC Bank Group has agreed to acquire 100% of the shares of the Bulgarian branch of Raiffeisenbank from its owners, Austria-based Raiffeisen Bank International (RBI).
The deal, worth €1.01bn (£863.1m, $1.16bn) includes RBI’s Bulgarian banking operations and fully-owned subsidiaries such as Raiffeisen Leasing Bulgaria, Raiffeisen Asset Management (Bulgaria) and Raiffeisen Insurance Broker (serving Raiffeisenbank Bulgaria’s leasing and corporate clients).
According to KBC, the transaction will be based on earnings per share (EPS) enhancing from year one onward, whereby the purchase price represents a 1.64-times multiple of the 2022 estimated tangible book value of the target and a 13-times price/earnings ratio (P/E) based on its estimated earnings for 2022.
Strong local player
Commenging on the deal, Johan Thijs, KBC’s executive director and Group CEO, said: “I am really delighted with this second Bulgarian acquisition in a year. We’ve established ourselves as a strong local player, offering a full range of high-quality banking, insurance, asset management and leasing services.”
He added: “Acquiring Raiffeisenbank (Bulgaria) is another testimony to our commitment to the Bulgarian market and support to the Bulgarian economy. We’re extremely happy to acquire a high-quality business with an excellent reputation and management team.
“Its clear focus on innovation and digitalisation – combined with a high customer satisfaction rating – mirrors our own Digital First strategy and will allow us to further expand our Bulgarian business, reaffirming our leading position in the Bulgarian financial market.”
Completion of the transaction is subject to regulatory approval and is expected by mid-2022.