Societe Generale Bulgaria To Be Sold To OTP

Hungary’s OTP Bank has completed financially the acquisition of Societe Generale Expressbank, the Bulgarian subsidiary of France’s Societe Generale Group, and other units of the group in Bulgaria, OTP Bank said on Wednesday.

The integration process is expected to be completed in 2020, OTP Bank said in a statement.

The acquisition agreement between Societe Generale and DSK Bank, the wholly-owned Bulgarian subsidiary of OTP, was signed on  August 1, as OTP agreed to acquire the Albanian and Bulgarian units of the French banking group.

In Bulgaria, OTP is acquiring through DSK 99.74% of Societe Generale Expressbank and its units Societe Generale Factoring, Sogelease Bulgaria and Regional Urban Development Fund, as well as direct control over insurer Sogelife Bulgaria. 

Documents entered into Bulgaria’s commercial register in December show that OTP Bank has increased the capital of DSK Bank by 1.17 billion levs ($683 million/600 million euro) to ensure DSK’s capital adequacy following the acquisition of Societe Generale Expressbank. DSK Bank’s capital was hiked to 1.33 billion levs, with OTP Bank having subscribed for all 117,349,800 new DSK Bank shares of 10 levs in par value each.

DSK Bank received a preliminary approval for the deal from the Bulgarian National Bank (BNB) in November, followed by approvals from the Financial Supervision Commission and the Commission for Protection of Competition in December.

DSK Bank, a wholly-owned subsidiary of OTP Bank, was Bulgaria’s second largest lender by assets at the end of November, while Societe Generale Expressbank was the seventh biggest, according to the latest available data from Bulgaria’s central bank. 

Societe Generale Expressbank has a market share of some 6.4%, OTP Bank said.

Read More

Volkswagen Soon To Decide Whether To Build New Car Plant In Bulgaria

Volkswagen has decided to begin concrete negotiations on a planned new multibrand production plant in Europe with the remaining potential locations, chairman Herbert...

Eurozone Unemployment Fell To 10 Year Low In November 2018

Unemployment in the eurozone fell in November, data showed on Wednesday, as joblessness in Europe neared pre-crisis levels, reports AFP. 

The Incomes Of Bulgarians Has Increased By 12%

An increase in the income of Bulgarians of over 12% at the beginning of the year was reported by the National Statistical...

Recent

Kaufland Opens First Hypermarket In Veliko Tarnovo

The Kaufland Bulgaria chain opened its first hypermarket in Veliko Tarnovo. With an investment of nearly 25 million leva, an assortment of...

Bulgaria To Start Exporting Heat Treated Poultry To Argentina

Bulgaria has received a certificate for the export of heat-treated poultry products to Argentina. The certification procedure was launched in 2019. This transpired during a...

Macedonia’s Ex PM Flees To Hungary Via Serbia

Macedonia’s fugitive former prime minister Nikola Gruevski has fled his country en route to Hungary through Serbia before an international arrest warrant was issued...