National Bank of Greece SA completed the sale of its 100% stake in Serbian units Vojvodanska banka a.d. Novi Sad and NBG Leasing to OTP Bank Nyrt. unit OTP Banka Srbija a.d. Novi Sad for a consideration of €125 million, following receipt of required regulatory and antitrust approvals.
The deal included a portfolio of Serbian-risk corporate loans. The consideration represents a multiple of around 0.75x tangible book value as of 2016-end.
The Greek lender said the transaction increases its third-quarter common equity Tier 1 ratio by 44 basis points, following the capital impact it already booked in the second quarter upon signing of the transaction. The positive impact of the sale on National Bank of Greece's group liquidity, including repayment of intragroup debt, is approximately €270 million.
OTP Bank said its market share in Serbia rose to 5.7% as a result of the transaction, adding that the merged bank will be the seventh-largest in Serbia by size of assets. The integration process is expected to be finalized in the second quarter of 2019.
Credit Suisse International served as exclusive financial adviser to National Bank of Greece in relation to the transaction, while Freshfields Bruckhaus Deringer acted as international legal counsel and Bojovic & Partners as local legal counsel to the lender.