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KBC completes acquisition of United Bulgarian Bank and Interlease

Staff Writer |
KBC completed the acquisition of United Bulgarian Bank and Interlease from the National Bank of Greece for a total consideration of 610 million euros, representing a 1.10x multiple of the 2016 Tangible Book Value of UBB and Interlease.

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The acquisition – which was announced on December 30, 2016 - was approved by the relevant regulatory authorities and received anti-trust approval.

KBC will use available funds to pay the acquisition price in cash.

The transaction will only have a limited impact of 0.54% on KBC’s solid capital position, keeping its CET1 ratio well above the regulatory minimum capital requirements. KBC’s CET1 stood at 15.7% (fully loaded, Danish compromise) at the end of 1Q17.

Together, UBB-CIBANK and DZI will become the reference in bank-insurance in Bulgaria, one of KBC’s core markets, boasting strong macroeconomic fundamentals while still offering potential for further penetration of financial services.

Following this acquisition, KBC will also become active in leasing, asset management and factoring in Bulgaria, offering its clients now a full range of financial services.

The operational integration of the business entities will be gradually introduced in the coming months.

During its first corporate governance meetings under KBC realm today, UBB will decide about the composition of its supervisory and management board, which will be led by Peter Andronov, current country manager Bulgaria and CEO of CIBANK.

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