KBC Group NV agreed to acquire 99.9% of United Bulgarian Bank AD from National Bank of Greece SA and the entire shareholding of Interlease, Bulgaria's third-largest provider of leasing services, for a total consideration of €610 million.
Prior to the transaction — which will have a negative impact of 54 basis points on the capital position of KBC Group upon completion — United Bulgarian Bank intends to make a €183 million extraordinary dividend payment to its current parent, subject to regulatory approval. The purchase price, to be paid in cash by utilizing internal sources/available funds, reflects the extraordinary dividend.
KBC Group is already present in Bulgaria through CIBANK AD and insurer DZI Insurance. After the United Bulgarian Bank acquisition, KBC will own the country's third-largest banking group in terms of assets, with a market share of about 11%, and the largest bank-insurance group.
The acquisitions are expected to close in the second quarter of 2017 at the latest, subject to regulatory approvals.