OTP submits binding bid for Niska banka
Friday, October 28, 2005, 10:09
OTP Bank Rt has submitted a binding bid to purchase a 89.39% stake in Niska banka a.d. to the Agency For Insurance Deposits, acting on behalf of the seller, the Government of the Serbian Republic, on October 24.
After OTP completed its due diligence, OTP Bank's acquisition team, together with its legal advisors and auditor, evaluated Niska banka and prepared the binding bid in accordance with the approval of OTP Bank's board of directors.
OTP submitted a letter of intent for the purchase of the small Serbian bank, which has a 0.7% market share, on 31 March 2005. The majority state owned Serbian bank has 80,000 customers and a 24-unit branch network. Niska banka had total assets of €40.2 million, total deposits of €13.2 million and loan stock of €8.1 million at the end of the first half of 2005. The equity of Niska banka was €18 million at the same time.
OTP said it sees a good opportunity in the privatization of Niska banka to accomplish its plans of entering the Serbian banking market.