The European Bank for Reconstruction and Development (EBRD) has signed today an agreement for the sale of its stake in Privredna banka Zagreb d.d. (PBZ), one of the leading financial institutions in Croatia and a member of Intesa Sanpaolo Group (ISP).
It is anticipated that the EBRD sold 3,981,990 shares representing its entire stake in PBZ to ISP via a pre-existing put option. The settlement of the transaction is expected on 16 June 2015.
PBZ is majority owned (76.6%) by ISP. EBRD acquired a 20.8% stake in PBZ in 2002in the second round of the bank’s privatisation, when the EBRD together with ISP facilitated the full privatisation of PBZ together with restructuring and improvements in corporate governance.
In 2005, the EBRD invested an additional €53 million in a capital increase by PBZ, raising the total of its investment to €167 million and increasing its stake to about 20.9%.
Nick Tesseyman, EBRD Managing Director, Financial Institutions, said: “We have taken the decision to sell our stake in Privredna banka Zagreb owing to the successful development of the bank as part of Intesa Sanpaolo Group. As a shareholder, the EBRD has been able to contribute to the strong performance of PBZ and we are pleased with the bank’s results. We remain a committed partner to PBZ and remain ready to provide the bank with EBRD funding and other services.”
Božo Prka, CEO of PBZ, said: “Privredna banka Zagreb expresses its gratitude to the EBRD for the successful long-term strategic partnership and trust.”
Since the beginning of its operations in Croatia in 1991, the EBRD has invested more than €3.1 billion in over 170 projects to date. The Bank’s activities include all areas of the economy and are especially strong in the infrastructure, corporate, financial institutions and energy sectors.