OTP published the following extraordinary announcement at the website of Budapest Stock Exchange (BÉT):
“A sale and purchase agreement for the 100% share package of Crnogorska komercijalna banka AD was signed in Podgorica, the capital of Montenegro on August 29, 2006 by the representatives of the companies selling the credit institution and Chairman-CEO Sándor Csányi and Deputy CEO László Wolf on behalf of the OTP Bank Nyrt as buyer. In addition to the purchase price, the document sets out all the essential conditions and guarantees of the deal. The € 105 million purchase price for the 100% share package of Crnogorska komercijalna banka AD will be paid upon the final closing of the deal scheduled for end-2006. The deal was preceded by comprehensive in-depth analyses and due diligence spanning several months, and involving the OTP Bank’s acquisition working group as well as consultants, including Deloitte Touche Tomatsu as financial advisor and the representatives of Berecz&Andrékó Linklaters Law Office as legal counsellors. The Sellers has been advised by KPMG on the financial side and Weil, Gotshal&Manges Law Firm as legal advisers. Crnogorska komercijalna banka AD was founded by 28 small and medium-sized companies as greenfield investment in 1997. The balance sheet total of the credit institution as at end-2005 amounted to € 303.3 million, translating into a 44% market share. The bank, with an original focus on the SME sector, provides a wide spectrum of services for both corporate and retail customers and is, unequivocally, a dominant market player in all business lines. The bank’s equity, which has been increasing steadily, stood at €19.3 million at end-2005. €3.025 million was posted in after-tax profit in the 2005 fiscal year, which represented 54.6% growth. The €161.2 million customer loan portfolio increased by 87.4% in 2005 on a year earlier. An even more robust, 141.5% rise was experienced in its €248.1 million customer deposit portfolio. Crnogorska komercijalna banka AD services its approximately 150 thousand customers through a network of 33 units and via electronic channels. Although the market leader Montenegrian bank is headquartered in Podgorica, approximately 25% of its loans and deposits are linked to the coastal region, which is of key importance, given that an increasingly dynamic tourism industry has come to play an important role in the country’s economy. In the OTP Bank’s opinion, the purchase price is realistic, reasonable, value-proportionate and reflects both the current market value of Crnogorska komercijalna banka and the potential business value based on the anticipated development of Montenegro’s economy.” (bet.hu)
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.