Equity
OTP's Bulgarian acquisition is on track
- OTP announced in early August that it will acquire Socetege Generale’s Bulgarian and Albanian operations, Expressbank and SocGen Albania. Both banks are relatively large on their home markets. The Bulgarian one has a 6.7% market share which makes it the seventh-largest bank in the country, and the Albanian bank is the fifth-largest there with a 5.7% market share.
- In mid-November, the Bulgarian National Bank approved OTP’s purchase of SocGen’s Bulgarian assets, and now Bulgaria’s financial authority has also green-lighted the deal.
- In Bulgaria, OTP’s local subsidiary DSK will acquire 99.74% of Expressbank, but it is also taking over other SocGen interest, and will directly own Sogelife Bulgaria and gain indirect control over Socete Generale Factoring, Sogelease Bulgaria and Regional Urban Development Fund.
- In light of end-March figures, the acquisition will make OTP the largest bank in Bulgaria, taking over the local operation of UniCredit.
- OTP’s share price showed no reaction to the approval, and was 0.2% down at HUF 11,790.
