The Czech government voted on Wednesday to sell a majority of the country_s second largest bank, Ceska Sporitelna a.s., to Erste Bank AG, giving the Austrian savings house a major foothold in emerging Europe.
Published:
4 February 2000 y., Friday
Finance Minister Pavel Mertlik told a news conference that Erste Bank Der oesterreichischen Sparkassen AG will pay Kc 19 billion ($514.6 million) in the loss-making bank where most Czechs keep their household savings. Erste Bank said buying Sporitelna was a major step in its strategy to become the dominant retail bank in Central Europe.
"Ceska Sporitelna is the ideal strategic partner for our expansion in the region," Erste Bank Chairman Andreas Treichl said in a statement.
"Erste Bank acquires the leading position on the Czech market, allows (Sporitelna) to better serve its clients, and provides our shareholders higher revenue."
Sporitelna, with assets of Kc 352 billion, lost Kc 9.5 billion in the first nine months of 1999, to international accounting standards. The sale is still contingent on a full-year 1999 audit, and regulatory approval.
The deal also calls for Sporitelna, under Erste management, to provide about Kc 22 billion in credits for Czech housing development, medium-sized Czech companies and agricultural concerns, as well as venture capital and cultural projects. Erste has also agreed to boost Sporitelna_s basic capital by Kc 4 billion within 24 months of the deal being closed.
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
Elinor Ostrom -- an American professor who developed ways to manage common property - is the first woman to win the Nobel prize for economics.
more »
The European Commission has today approved an application from the Netherlands under the Globalisation Adjustment Fund (EGF) for € 386 114 to help 435 workers made redundant by Heijmans N.V., a Dutch construction company, back into jobs.
more »
Seeking to strengthen and further expand product sales in the Asian region, the Lithuanian biotechnology company Fermentas established its subsidiary in China.
more »
Statistics Lithuania reports that, based on non-final data obtained from customs declarations and Intrastat reporting data, exports in January–August 2009 totalled LTL 25.6 billion, while imports – LTL 28.9 billion.
more »
On 6 October 2009 AB Bank SNORAS Board decided to reform the Private Limited Company UAB “SNORO investicijų valdymas” into the Public Limited Company AB „Finasta Holding“, which will control recently obtained „Finasta“ group companies and other Bank SNORAS group companies, engaging in investment management.
more »
If your airline goes bankrupt and leaves you stranded what are your legal rights? Members of the Parliament's Transport Committee want grounded passengers to have access to a special compensation fund.
more »
Euro report says currency provided protection from interest and exchange rate turbulence.
more »
Statistics Lithuania informs that in September 2009, against August, prices for total industrial production sold dropped by 1.6 per cent.
more »
The European Bank for Development and Reconstruction (EBRD), the European Investment Bank (EIB) Group, and the World Bank Group* on Monday warned against complacency in the face of significant challenges that stand in the way of economic recovery in Central and Eastern Europe.
more »
The leader of the country’s investment products’ market – AB DnB NORD Bankas – intends to issue up to EUR 300 million nominal value corporate notes in local and foreign markets over the next 12 months.
more »