The transfer of Piraeus Bank's subsidiary in Bulgaria, Piraeus Bank Bulgaria AD (PBB), to Eurobank Bulgaria AD was completed on Friday.
Athens-based Piraeus Bank announced the development in a press release, saying all necessary approvals by Bulgarian regulatory authorities and the Hellenic Financial Stability Fund.
The transaction reached 75 million euros.
The press release noted:
"Total consideration for the shareholding stake amounts to €75mn, and the Transaction is capital accretive for Piraeus Bank Group. Based on Group reported CET-1 ratio as of 31.03.2019, the Transaction translates into 22bps increase, while the resulting RWA relief stands at €0.8bn.
“The Transaction represents the last major milestone towards the conclusion of Piraeus Bank’s Restructuring Plan commitments, as those were agreed with the European Commission. It has a positive impact on our capital base, enabling further the Bank’s capital enhancement strategy and focus on core banking operations”, according to Christos Megalou, Piraeus Bank’s CEO.
Mediobanca acted as financial adviser to Piraeus Bank, whilst White & Case LLP acted as international legal counsel and Boyanov & Co as local legal counsel of Piraeus Bank for the Transaction."