Magyar Takarékszövetkezeti Bank (MTB) on Thursday submitted a bid to Takarék Mortgage Bank to purchase the 51% stake it holds in Takarék Commercial Bank, formerly called FHB Bank, the mortgage bank said in a statement, according to state news wire MTI.
Takarék Mortgage Bank has called a general meeting for August 27 where shareholders will likely accept the buyout offer.
Takarék Mortgage currently holds a 51% stake in Takarék Commercial with state-owned postal company Magyar Posta holding a 40.79% stake and MTB, the central bank of the Takarék Group, already holding 8.21%.
The mortgage bank is expected to sell its stake in Takarék Commerical Bank by the end of October.
Takarék Commercial Bank has 200,000 clients and total assets of HUF 544 bln. According to Hungarian accounting standards it had HUF 1.8 bln after-tax profit in 2018.
Takarék Group decided late last year to gradually merge into a single universal commercial bank by 2020, which will have the largest network of branches in the country when the merger is completed.