Erste Group Bank AG — M&A Activity 2005

Dec 20, 2005

News Details

Ad-hoc | 20 December 2005 19:10

Erste Bank d. Oest. Spark: Erste Bank wins bid for Romania’s BCR

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Erste Bank wins bid for Romania’s BCR Clear market leader in Romania The Romanian privatization agency AVAS tonight accepted the bid from Erste Bank der oesterreichischen Sparkassen AG for 61.8825% of the shares of Banca Comerciala Romana S.A. (BCR), Romania’s largest bank. The sale marks the completion of a two-stage privatization process in which nine European banks originally competed. The share purchase agreement will be signed on 21 December 2005 and the transaction is expected to close in the second quarter of 2006. Details of the transaction Erste Bank is acquiring a majority interest in BCR for EUR 3.75 billion, buying a 36.8825% stake from the Romanian government, 12.5% +1 share from the EBRD and 12.5% +1 share from the IFC. If based on the 30 June 2005 book value reported by BCR of EUR 1,037 bn, this would translate into a price/book multiple of 5.8. Pursuant to its current business plan for BCR, Erste Bank targets a return on investment (excluding funding costs) of around 10 % from 2009 onwards. Erste Bank der Oesterreichischen Sparkassen AG Graben 21 1010 Wien Austria ISIN: AT0000652011 WKN: 065201 Listed: Amtlicher Handel in Wien; Open Market in Frankfurt; Freiverkehr in Berlin-Bremen, Hamburg, München und Stuttgart End of ad hoc announcement (c)DGAP 20.12.2005