trending Market Intelligence /marketintelligence/en/news-insights/trending/esemsvv36quqp7nsp5nglw2 content esgSubNav
In This List

Report: Arca sweetens bid for Wiener Privatbank with another exclusivity premium

Blog

Post-webinar Q&A: Speed and Scalability – Automation in Credit Risk Modeling

Case Study

A Chinese Bank Takes Steps to Minimize Risks as it Supports International Trade

Blog

Middle East Africa MA by the Numbers: Q3 2021

Blog

Banking Essentials Newsletter: November Edition 2021 - Part 2


Report: Arca sweetens bid for Wiener Privatbank with another exclusivity premium

Czech and Slovak investment group Arca Capital's planned purchase of Austria-based Wiener Privatbank SE has been facing delays and could become more costly for the buyer, news website Euro.cz reported Oct. 15.

In September 2017, Austrian real estate investors Günter Kerbler and Johann Kowar agreed to sell their 61.37% stake in Wiener Privatbank to Arca for €10 per share. At the time, Arca also agreed to pay a premium of €2 per Wiener Privatbank share for exclusivity in negotiations. The parties expected the purchase to be completed in June 2018.

With the transaction facing delays, Arca recently offered to pay another premium of €1 per Wiener Privatbank share, on the top of the already agreed price, to extend the exclusivity option until the end of June 2019. Taking into account both exclusivity premiums, the total purchase price for the majority stake in the Austrian bank will increase to €39.92 million from €36.85 million, according to the report.

The Austrian financial regulator recently said the request for the takeover of a majority stake in Wiener Privatbank was withdrawn, with the lender attributing the withdrawal to delays in finalizing the deal, Euro.cz said.

Arca Capital has been undergoing ownership changes due to the pressure from the Czech central bank and to prepare for the planned acquisition of the Austrian bank, Euro.cz also noted. Businessman Rastislav Velič currently has a 55% holding in Arca, while shareholders Peter Krištofovič and Heinrich Kiš own a 30% holding and a 10% holding, respectively. Arca's former majority shareholder Pavol Krúpa now owns 5% of the company, and is set to fully divest his stake in the future, according to Euro.cz.