Of Special Interest


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3rd January 2012

Raiffeisen seeking to renegotiate Polbank deal?

Rumours circulated late December that Raiffeisen Bank International is trying to renegotiate the price it agreed to pay for the 70% stake in Polbank it has agreed to buy from EFG Eurobank. The renegotiation comes late in the day as the deal follows from an auction in late 2010 and an agreed price first announced in February 2011.

The February announcement stated that Raiffeisen would pay €490m for the stake. Whilst there was provision for a final adjustment to this price the rumours suggest that the difference being sought is more than the final asset valuation / cash balances that might normally be expected.

Raiffeisen Group, including the non-listed Raiffeisen Zentralbank was found to need approximately €2.12bn in new capital by the European Banking Authority to meet the June 2012 9% CT1 capital requirement. The Group have announced plans to meet this target which would not have included the Polbank acquisition. It is suggested that Polbank has a significant debt renewal requirement for 2012.