MKB signs contract on sale of Romanian unit
MKB Bank, the Hungarian unit of Germany-based Bayerische Landesbank (BayernLB), reported yesterday the signing of a contract for the sale of its direct 96.3% stake in Romania-based Nextebank S.A. on December 31.
MKB said the transaction is pending permission by the National Bank of Romania; the purchase price and buyer were not revealed. The deal makes good on a promise from the company made in August to divest the operations. MKB chairman/CEO Pál Simak said at that time that “If we can agree on the details, then the Romanian unit will not be part of the MKB group by the end of the year.”
MKB purchased its first, 55.4% stake in then-Romexterra Bank in October 2006. At that time, Romexterra controlled 0.8% of the Romanian market.
BayernLB earlier made MKB its bridgehead for expansion in the region, but the financial crisis seems to have ruined the opportunity: A financial report for the first half of 2013 showed losses of €108 million for MKB, which was blamed on “the ongoing difficult economic and political environment” in the country...
As part of a €5 billion bailout deal with the German government and the European Commission, Bayern LB must sell its stake in MKB Bank by the end of 2015.
– material by Gergő Rácz was used in this article
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.