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Piraeus Bank to sell Romanian subsidiary

Staff Writer |
Piraeus Bank announced that it has entered into an agreement with J.C. Flowers & Co. or the sale of its entire shareholding stake in its banking subsidiary in Romania, Piraeus Bank Romania (PBR).

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The transaction has been approved by the board of directors of Piraeus Bank and the Hellenic Financial Stability Fund, and is subject to customary conditions, including regulatory approvals by the relevant authorities in Romania. The transaction is expected to close in the first half of 2018.

The impact of the transaction on the Group's regulatory capital position is expected to be neutral.

“The sale of our banking operations in Romania represents another major step towards the timely execution of the Group's restructuring plan commitments, as those agreed with the Directorate General of Competition of the European Commission, as well as the implementation of the strategic plan of the Group, “Agenda 2020”.

“I am particularly glad that going forward PBR will be owned and managed by one of the most well-esteemed international private equity firms with significant experience in the financial services space across numerous jurisdictions,” Christos Megalou, Group’s chief executive officer, said.

J. Christopher Flowers, CEO and Managing Director of JCF said: “Piraeus Bank Romania has a solid solvency, liquidity, and asset quality profile in the fastest-growing economy in the European Union. We look forward to working with Piraeus Bank Romania to complete the acquisition and create a strong independent bank in the dynamic, local banking sector in Romania.”

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