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OTP seen eyeing Bulgarian unit of Société Générale

OTPʼs Bulgarian subsidiary DSK Bank is interested in acquiring the Bulgarian unit of Franceʼs Société Générale, according to a report by the online version of Bulgarian weekly business newspaper Capital, cited by Hungarian news agency MTI.   

The paper said Société Générale plans to sell all of its units in Central and Eastern Europe that are not among the top three market participants in their respective countries, also citing its units in Albania, Montenegro, Serbia and Moldova.   

The report said American private equity firm Apollo Global Management has also submitted an indicative bid for Société Générale Expressbank, the seventh biggest bank in the country, although the offer has so far been rejected.   

Observers put the purchase price of the bank at slightly more than EUR 380 million, the value of its net assets at the end of 2017, noting that it has an extensive branch network and one of its strengths is corporate lending. The report noted that this is what could be interesting from the perspective of OTP, as it could complement the activity of DSK Bank, which is strong in the retail segment. 

The paper said bids can be expected to be submitted in early summer and the transaction could be completed by the end of this year.