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The Warsaw Voice » Business » April 11, 2018
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Paribas buys Raiffeisen
April 11, 2018   
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Bank BG¯ BNP Paribas, the WSE listed unit of the French banking group, will buy the core banking assets of Raiffeisen in Poland for ca. EUR 775 million in a fore-equity deal, sides said early Tuesday.
The deal brings in PLN 39.8 billion in assets from Raiffeisen's retail, corporate, private banking and SME businesses, including PLN 19.0 billion on the loan book. Gross loans are 64% corporate and SME, 23% consumer and 13% PLN mortgage, the presentation shows.
That's a 55% increase in total assets, but not enough to move BGZ BNP Paribas up out of sixth place on the ranking of Polish banks. Gross loans are growing by 34% in the deal, also strengthening, but not improving, a sixth place ranking.
Sides will exclude the FX-mortgage book as well as wind farm and select other corporate exposures via demerger. Those assets will be held separately by Raiffeisen in Poland.
The purchase price at PLN 3.25 billion, including an up-front payment to kick off IT works, imply a 0.87x P/BV multiple based on expected pro-forma NAV at closing or 0.95x P/TBV based on end 2017 pro-forma accounts of the core bankinbg assets included in the deal.
For the Polish buyer, the purchase is a for-equity deal which will be be kicked off by their French parent. The French bank will take an estimated 45% stake in the Raiffeisen Polish unit.
BGZ BNP Paribas, which must first raise capital to meet Polish regulatory demands, will later issue an estimated 49.6 million shares to acquire the demerged Polish bank from RBI and its parent. That final issue should come in Q4 following completion of the demerger.
RBI will be left with a 9.8% BGZ BNP Paribas to be acquired either by the French BNP Paribas or by third parties.
The deal had been expected. Raiffeisen was facing a consecutive regulatory deadline to sell or float the asset.
The deal requires consent from the Polish anti-monopoly office KNF and the ECB.
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