Hungary's OTP buys bank in Serbia

The Serbian unit of the largest Hungarian Bank OTP has bought the Serbian Vojvodjanska Banka from the National Bank of Greece for EUR 125 million. The deal also includes other Serbian units of the National Bank of Greece.

The National Bank of Greece S.A. ('NBG') has announced in a statement the signing of a definitive agreement with OTP Banka Srbija a.d. Novi Sad ('OTP Serbia') for the divestment to OTP Serbia of its 100% stake in its Serbian subsidiaries Vojvodjanska Banka AD ('VOBAN') and NBG Leasing doo ('NBG Leasing') and of a portfolio of Serbian-risk corporate loans (together the 'Transaction').

The statement also says the agreed consideration for the share capital of VOBAN and NBG Leasing amounts to EUR 125 million.

According to NBG CEO Leonidas Fragkiadakis, "after over 15 years of successful presence in Serbia, NBG divests from its Serbian operations to deliver on its commitments to the European Authorities under the Restructuring Plan. 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."

Closing of the transaction is subject to approval from the National Bank of Hungary, the National Bank of Serbia, the General Council of the Hellenic Financial Stability Fund and anti-trust approvals.