Piraeus Bank SA said it entered into an agreement to sell its Serbian banking and leasing operations to Direktna Banka a.d. Kragujevac for a total cash consideration of at least €58 million and up to €61 million.
The Greek lender noted that the total consideration will depend on the divested assets' financial performance until the transaction closes, through a combination of direct sale price and simultaneous reduction of capital in Serbian unit Piraeus Banka a.d. Beograd.
The transaction is subject to corporate and regulatory approvals, including from the National Bank of Serbia and the Hellenic Financial Stability Fund, and is expected to be completed in the first quarter of 2018 following receipt of all necessary approvals.
Piraeus Bank said the deal is part of its restructuring plan and will be neutral to its common equity Tier 1 ratio.
BNP Paribas served as financial adviser to Piraeus Bank on the transaction, while Clifford Chance and Andric Law Office served as legal counsel.