OTP Bank sets up Cyprus-based company

Food

Hungary’s OTP Bank said it has established OTP Holding Limited, a company registered in Cyprus, transferring into it shares it holds in its insurance unit OTP Garancia, the property unit OTP Ingatlan and the travel agency OTP Travel, the bank announced on the website of the Budapest Stock Exchange on Thursday.

Among the units transferred under the new OTP Holding, the sale of OTP Garancia shares to France’s Groupama is underway. The OTP announcement stated that the foundation of OTP Holding Limited was part of the bank’s plan to establish an international holding corporate structure.

The OTP announcement said that OTP is the sole shareholder in OTP Holding Limited, which it registered in Cyprus on September 5, 2008. OTP said it transferred its 7,350 shares in OTP Garancia Biztositó, representing 99.986% of the company’s registered capital, its 12,281 shares in OTP Ingatlan, representing 73.54% of the company’s registered capital, and its 100% stake in OTP Travel, to the unit.

OTP Bank announced in February it agreed to sell 100% of OTP Garancia along with its subsidiaries in Romania, Bulgaria and Slovakia to Groupama for a total consideration of Ft 164 billion ($952 million). Groupama also agreed to enter into a long-term partnership with OTP Bank on cross sales in all nine countries in which OTP Bank operates.

OTP announced the closure of the sale of its Slovakian insurance unit to Groupama on Wednesday, and said that further transactions that are part of the OTP Garancia deal will follow in the coming weeks, when approval from supervisory authorities is obtained. (MTI-Econews)

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