Investment fund SIF Muntenia has signed the agreement to sell its 6 percent share package in BCR to majority shareholder Erste, for some EUR 96 million. The fund will received EUR 28.7 million in cash and a 1 percent share package in Erste.

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 SIF, 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.

“Subject to the successful completion of the respective SIF corporate approval processes, the acquisition will be carried out in a series of transactions. SIF Moldova has the possibility to enter into the same agreement if it decides to do so,” Erste Group has announced.

editor@romania-insider.com