By Leonidas Stergiou
THE sale of the subsidiary in Albania had been announced a year ago by the management of Alpha Bank, as well as its sale in London. Both moves are part of the “Tomorrow” transformation program, from which Alpha Bank raises a value of almost 800 million euros for the shareholders of the listed company, according to the report of the auditors.
Goodwill arises from the integration of foreign activities under subsidiaries, which belong to Alpha Bank, which is a 100% subsidiary of Alpha Bank Holdings, ie the listed company.
The plan envisages the development of an international presence through Romania and Cyprus. To implement this plan, Alpha Bank is selling its subsidiaries in Albania and London, in order to channel these funds to Greece and to its strategic markets in Romania and Cyprus.
The first step was the sale of the Albanian subsidiary to OTP Bank Plc, for 55m euros, almost double what was foreseen in tomorrow’s plan, with a capital gain of 400m euros. However, the details of the agreement show that Alpha Bank is not leaving the area, with the sale of its subsidiary.
The second step comes with the sale of the subsidiary in London. At this stage, Alpha Bank accepts non-binding offers and the transaction is expected in 2022. The benefit from this move is estimated at 200 million euros.
The deal in Albania
According to the plan of Alpha Bank, strong development of the new banking group and the dynamic integration of the operations and the staff of ABA is foreseen, thus fully securing the interests of the customers of the Alpha Bank Group operating in Albania. The plan also states that the quality of the counterparty Group and its presence in Central and Eastern Europe will support future cooperation between Alpha Bank Group and OTP Group and meet the needs of Alpha Bank customers in these areas.
The transaction will create a banking group in Albania with a market share of about 11% on assets. Twenty-three years after the opening of its first branch in Tirana, Alpha Bank Albania will be a member of one of the largest banking groups in Central and Eastern Europe. OTP is an international bank with a presence in 11 countries.
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Source From: Capital
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