Eurobank agrees to merge the Serbian unit with Direktna Banka
ATHENS (Reuters) – Eurobank, one of Greece’s four largest lenders, announced Thursday that it has agreed to merge its Serbian unit Eurobank Beograd with Direktna Banka.
The combined bank, Eurobank Direktna, will have total assets of over € 2.0 billion, total equity of over € 300 million and net profit of over € 35 million, Eurobank said.
Its market share will exceed 6.5% of total loans, making it the seventh largest in Serbia.
Eurobank will control around 70% of the combined bank
while Direktna shareholders will hold the remaining 30%.
“Both sides have embarked on a growth-oriented business plan (…) which will allow the combined bank to finance the Serbian economy and grow profitably over the next few years,” Eurobank said. .
The merger will be capital neutral for Eurobank and will increase earnings per share (EPS) by 3% after synergies, he said.
“This transaction is part of Eurobank’s strategy
to further expand its international activities and create added value for shareholders through targeted acquisitions, mergers or joint ventures, ”said Stavros Ioannou, deputy managing director of Eurobank, in a statement.
Reporting by George Georgiopoulos; edited by Jason Neely