WARSAW: Poland's Alior Bank said on Tuesday it had agreed to buy a 98 percent stake in smaller rival Meritum Bank from two private equity funds and the European Bank of Reconstruction and Development (EBRD) for 353 million zlotys ($107 million).
About half of the purchase price, or 173 million zlotys, will be paid to Innova Capital and WCP Cooperatief, a unit of Wolfensohn Capital Partners, in the form of new shares issued by Alior Bank, a statement said.
Before the agreement the Innova Financial Holding fund managed by Innova Capital held a 49.9-percent stake in Meritum, WCP Cooperatief held 24.1 percent and the EBRD owned 23.9 percent.
Alior, Poland's No.14 lender in terms of assets, said its existing shareholders will not have the right to participate in the new issue of 2.355 million of its shares for Innova Financial and WCP Cooperatief at 73.30 zlotys per share.
Alior's current shareholders will vote on the share issue at a meeting starting on Oct. 22. Alior said the purchase of Meritum would require approval from the competition authority and state financial supervisor KNF.
Poland's banking sector is consolidating, with top lender PKO BP, rival Bank Pekao, and No.3 player BZ WBK BZW.WA all signalling they would look into possible acquisitions.
Polish lenders avoided the worst of the toxic loan problems that hit other countries and the economy is stable and growing. Italy's UniCredit controls Pekao and Banco Santander runs BZ WBK.
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