Listing Romania's main lender by assets BCR on the stock exchange would not be possible given the current circumstances and could take up to two years to start the process during favorable market circumstances, said Manfred Wimmer (in picture), chief financial officer with BCR's main shareholder Erste Group, during a press conference.

Erste Group, which has recently purchased 24 percent in BCR from the four SIFs in Romania, has asked the SIFs to waive the right to ask for the bank's listing on the stock exchange, as the privatization contract from 2006 required.

“We must not forget that a failed listing in a significant damage in reputation for any company, and BCR is an important bank which should not and cannot be submitted to such a reputation damage, should the listing fail,” said Wimmer.

Romania has recently attempted or sell its 9.84 percent stake in oil and gas company OMV Petrom on the Bucharest Stock Exchange but the initial public offering failed to raise the needed interest. The public offer has been postponed to an indefinite date.

Austrian Erste Group, the majority owner in the largest Romanian lender BCR, has agreed to purchase a 24.12 percent stake in the Romanian lender from the four SIFs, minority shareholders in the bank, in a combined share swap and cash deal worth some EUR 435 million in total. SIF Banat Crisana, SIF Transilvania, SIF Muntenia and SIF Oltenia will sell 24.12 percent or 2.6 billion shares in BCR to Erste Group, and in exchange will waive their rights to request the listing of BCR, as well as to special dividends. Erste Group’s participation in BCR is set to increase to 93.52 percent.

The deal values BCR at some EUR 1.8 billion, much below its value when privatized. In 2006, the value of the bank was of EUR 6 billion, following the EUR 3.75 billion privatization of 61.5 percent in the bank. BCR’s listing on the stock exchange was one of the items included in the privatization contract.

The four SIFs are expected to decide whether they would take this offer, which will no longer be valid after their shareholders' decision, in case they reject it. SIF Moldova has not been included in the announced agreement, but Erste Group said it could extend the offer to SIF Moldova as well.

Corina Saceanu, corina@romania-insider.com

(photo source: Erste Group)