Allen & Overy has advised OTP Bank on the purchase by its Croatian subsidiary OTP Banka Hrvatska of 98.4% of Italy-based Banco Popolare’s branches in Croatia for HRK 107 million.
The transaction expands OTP Banka Hrvatska’s network in Croatia by 33 branches and 30 ATMs, to a total of 130 branches overall and more than 250 ATMs.
Banco Popolare Croatia is Croatia’s 14th-biggest bank in terms of assets, with total assets of HRK 2.3 billion as at end 3Q 2013, almost 54,000 clients, and more than 2% share of the Croatian retail consumer lending market. After completion of this deal, OTP Banka Hrvatska will have some 440,000 clients, and will add the acquisition’s capital stock to its own assets of some HRK 14.1 billion as at end 3Q 2013. Allen & Overy was the sole legal advisor to OTP Bank in the deal.
The Allen & Overy deal team was led from the regional M&A practice headquarters in Budapest by Partner Hugh Owen, Head of Allen & Overy's South Eastern Europe Desk. He was assisted in the transaction by Budapest-based Associates Marton Eorsi and Attila Komives.
Of the deal, Owen commented: “We are pleased and proud to have advised OTP Bank on this strategic move by one of its key regional subsidiaries to expand its presence in the very promising Croatian market. OTP Bank has a strong and capable M&A team and the negotiations were cordial and sensible. This successful outcome confirms and vindicates our strategy of supporting major entities and sectoral trends across CEE/SEE from our Budapest hub, and we are glad to be able to advise one of Hungary’s most important companies in their own regional ambitions."