Eurobank EFG to acquire DZI Bank in Bulgaria | Eurobank
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Eurobank EFG to acquire DZI Bank in Bulgaria

EFG has reached an agreement with DZI Life Insurance A.D. and other shareholders of DZI Bank in Bulgariato acquire shares representing 74.26% of the bank’s share capital. The total consideration for the transaction will amount to approximately €158 million, which includes 2 million Eurobank EFG shares.

DZI Bank is a medium-sized Bulgarian bank listed on the Bulgarian Stock Exchange and operates a network of 131 branches and 43 micro-branches with ca. 1,300 employees. DZI Bank is particularly strong in corporate and commercial banking, deposit gathering and card issuing.  In June 2006, DZI Bank had Total Assets of €563 million, Loans of €250 million and Deposits of €477 million.  The Bank is a member of the DZI Financial Group which is active in general, life and health insurance, brokerage and real estate.

Eurobank EFG is already present in Bulgaria through its subsidiary Bulgarian Post Bank with a distribution network of 143 branches.

Eurobank EFG’s objective is to combine the two entities, in order to strengthen its leading position in the rapidly growing Bulgarian market. The future integration of the two banks will generate synergies both in operations and in distribution, capitalizing on the strengths of each organization. The combined entity with a network of more than 250 branches will be one of the largest Bulgarian Banks commanding a market share equal or exceeding 10% in Total Assets, Loans and Deposits.

The acquisition of DZI Bank in Bulgaria follows that of Universal Bank in Ukraine, the roll out of a branch network in Poland and the acquisition of Tekfenbank in Turkey earlier this year and is consistent with the announced strategy of Eurobank EFG group to expand its activities in the most important markets of New Europe.

Closing of the transaction is subject to regulatory approvals in Bulgaria, Greece and Switzerland,and is expected to occur in the fourth quarter of 2006.