In a bid to accelerate its penetration into the Ukrainian banking market, Erste Bank has entered into an agreement whereby it will acquire 100% shares of Bank Prestige, as opposed to the 50.5% acquisition announced in July 2006, for a total purchase price of E79.4 million.
Our decision was supported by the fact that the former owners will continue to support Bank Prestige with their know-how and local expertise, commented Andreas Treichl, CEO of Erste Bank. Additionally, the established management team will stay on board. As a result, our plans for Ukraine remain unchanged and we continue to target a market share of 4% to 5% by 2009.
To support the business plans, Erste Bank has agreed to invest E229 million, in addition to the purchase price, until 2010.
Once the acquisition has been completed, Bank Prestige will be fully integrated into Erste Bank Group and operate under the Erste Bank brand, with a strong focus on both corporate and retail business.
The approvals of both the Ukrainian National Bank and the Antimonopoly Commission, as well as the Austrian Financial Market Authority, have already been obtained. The transaction is scheduled to draw to a close in January 2007.