MTB Magyar Takarékszövetkezeti Bank Zrt. submitted a binding offer to acquire Takarék Jelzálogbank Nyrt.'s 51% stake held in Takarék Commercial Bank Ltd., formerly operating as FHB Kereskedelmi Bank Zrt.
Takarék Jelzálogbank said in a July 25 filing that its shareholders will vote on accepting the offer during their special general meeting to be held Aug. 27. The offer made by MTB Bank is in line with Takarék Jelzálogbank's strategic objective to focus on a mortgage bank-based business model devoted to refinancing and mortgage bond issuance, the financial institution noted.
Takarék Jelzálogbank is expected to sell its stake in Takarék Commerical Bank by the end of October, the Budapest Business Journal reported July 26. MTB Bank, which the central bank of the Takarék Group, already owns an 8.21% stake in Takarék Commercial Bank, while Hungary's state postal company Magyar Posta has a 40.79% holding in the lender, the news report noted.
Jozsef Vida, CEO of MTB Bank, told Reuters in December 2018 that the Takarék Group plans to transform its business into a universal bank. The universal bank would be formed by gradually merging the group's subsidiaries, including Takarék Commercial Bank, into a single unit, while Takarék Jelzálogbank would continue to operate as a separate entity, focusing on bond issuing and refinancing activities, Retail Banker International also said in December.