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ELLA Bank to be sold or transferred to another fund

The majority owner of ELLA Bank Rt, Mortgage Holdings, will either set up a new fund to buy the bank's shares or sell the bank, marketing director of the bank Marianna Varga said on Thursday.

Mortgage Holdings, which owns 90.25% of ELLA's shares, is a subsidiary of Emerging Europe Capital Investors (EECI). The EECI fund will end its run in two years, which led to talks with HVB Bank on the sale of ELLA, Varga said, commenting on a Wednesday announcement by HVB Bank Rt CEO Matthias Kunsch that HVB would buy ELLA Bank. Selling the bank is only one option, the other is to set up a new fund when the current one ends its run and invest the bank's shares in it. The fund has an option on the shares for two years from the end of its run.
ELLA Bank closed 2005 with after-tax profit of Ft 93 million and total assets of Ft 51 billion. In the first quarter of 2006, the bank had profits of Ft 250 million and total assets of Ft 60 billion, including a stock of loans worth Ft 53 billion.