VIENNA: The European Bank for Reconstruction and Development (EBRD) plans to invest up to 50 million euros ($62 million) for a 20 percent stake in the Balkans network of nationalised Austrian lender Hypo Alpe Adria, it said on Wednesday.
Hypo Alpe Adria -- now known as Heta Asset Resolution after its conversion to a "bad bank" -- has agreed in principle to sell the Balkans network to US private equity group Advent International and the EBRD.
But several issues still remain open, Austria's finance minister said on Tuesday. In a presentation on its website before a board meeting on Wednesday to approve the investment, the EBRD said it would provide up to 50 million in equity finance for the deal and the project cost was up to 250 million.
"The project is implemented by a share subscription, jointly with Advent, to a vehicle in Luxembourg for the sole purpose of acquiring the Holding.
EBRD will subscribe for a 20 percent stake," it said. The Balkans network, now known as Hypo Group Alpe Adria AG, has a book value of 89 million euros after several writedowns.
It comprises a network of banks and leasing companies in Bosnia and Herzegovina, Croatia, Montenegro, Serbia and Slovenia.
Comments
Comments are closed.