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EBRD joins in privatisation of largest Slovene bank
An equity investment of up to €175 million in Nova Ljubljanska banka
The European Bank for Reconstruction and Development will invest up to €175 million in Nova Ljubljanska banka d.d. (NLB), the largest banking group in Slovenia, as part of NLB's privatisation. The transaction would represent one of the largest EBRD investments in a privatisation process in central and eastern Europe. The EBRD commitment comprises the acquisition of 5% of NLB's capital and allows for further acquisitions by EBRD in a future private placement of NLB's shares.
The transaction implements the Programme for the Privatisation of NLB, originally approved by the Slovene Government in 2001. The first stage of this Programme, representing the purchase of 34% of shares by a key investor was signed in May 2002 with the Belgian KBC Bank and Insurance Group (KBC). It is expected that in the course of 2002 a private placement of shares will be undertaken which will increase the private ownership in NLB's shareholding structure.
The privatisation will assist NLB in the further development of its business in Slovenia, the expansion of its range of banking and non-banking services and its geographic expansion, according to EBRD President Jean Lemierre. He said the EBRD would work together with NLB, the Republic of Slovenia and KBC in supporting NLB in its ambition to become a premier regional bank in south east Europe. By subsequently offering its shares to investors, the EBRD hopes to contribute to the promotion of Slovene capital markets.
At the end of 2001, NLB Group's assets stood at about €7.8 billion and shareholders' equity at about €500 million, representing a market share in excess of 45 per cent of the Slovene market.
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