Na­tional Bank sells its Bul­gar­ian sub­sidiaries

Kathimerini English - - Focus -

Na­tional Bank of Greece agreed to sell a 99.1 per­cent stake in its Bul­gar­ian unit United Bul­gar­ian Bank (UBB) and its fully owned leas­ing sub­sidiary In­ter­lease EAD to Bel­gian bank KBC Group, Na­tional Bank said on Fri­day. Na­tional Bank will re­ceive 610 mil­lion eu­ros, it said, while UBB plans to make a 50-mil­lioneuro div­i­dend dis­tri­bu­tion to the Greek lender ahead of the trans­ac­tion and af­ter ap­proval by its an­nual gen­eral assem­bly. The sale of UBB is part of Na­tional Bank’s re­struc­tur­ing plan agreed with the Euro­pean au­thor­i­ties to boost its cap­i­tal. “The trans­ac­tion fur­ther strengthens NBG’s po­si­tion in terms of cap­i­tal and liq­uid­ity, al­low­ing for the re­de­ploy­ment of re­sources to sup­port the Greek eco­nomic re­cov­ery,” Na­tional Bank chief ex­ec­u­tive of­fi­cer Leonidas Fragki­adakis said in a state­ment. NBG has had a pres­ence in Bul­garia for 15 years. UBB is Bul­garia’s fourth­largest bank in terms of as­sets. In­ter­lease is the third-largest leas­ing firm in the coun­try, KBC Group said in a state­ment. KBC said it will use in­ter­nal sources and avail­able funds to pay the price in cash. The deal is ex­pected to be con­cluded in the sec­ond quar­ter of 2017 at the lat­est.

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