Main regulatory approvals for acquisition of Core Bank BPH by Alior Bank obtained
On 19 July 2016, the Polish Financial Supervision Authority unanimously approved Alior Bank’s acquisition of Core Bank BPH. Earlier, an unconditional approval for the transaction was also issued by the President of the Office of Competition and Consumer Protection.
Having secured the regulatory approvals means another step towards the satisfaction of all conditions specified in the share purchase and demerger agreement regarding the acquisition of the Bank BPH core business executed between Alior Bank and GE Capital has been reached. Once the remaining conditions of the agreement will be satisfied, Alior Bank will acquire Core Bank BPH without the mortgage portfolio and BPH TFI.
Alior Bank already has funding secured for the transaction, having raised PLN 2.2 billion in a rights issue successfully closed in the second quarter of 2016, being the largest rights issue on the Warsaw Stock Exchange since 2009. Approximately PLN 1.6 billion will be deployed to acquire Core Bank BPH, while the remaining part will be used to strenghten Alior Bank’s equity, allowing for further dynamic growth.
On 11 July 2016, Alior Bank announced a tender offer for Bank BPH shares, as a result of which Alior Bank will temporarily become Bank BPH’s significant shareholder. The tender offer might lead to a squeeze out of Bank BPH’s minority shareholders. Upon finalising successful tender offer and meeting all the conditions specified in the share purchase and demerger agreement, a demerger of Bank BPH will be the next step, with Core Bank BPH being acquired by Alior Bank and the mortgage business remaining at Bank BPH. Bank BPH’s share capital will be reduced, and GE Capital will become the sole owner of Bank BPH’s mortgage business.
The acquisition of Core Bank BPH is in line with Alior Bank’s growth strategy, which includes both organic and acquisitive growth, in a combination with stronger rates of return on capital. The transaction is expected to be finalised in the fourth quarter of 2016. As a result of the Core Bank BPH acquisition, Alior Bank will become the 9th largest bank in Poland by assets. The transaction will bring Alior Bank closer to its strategic objective of being one of the top 5-6 largest banks in Poland in the coming years.
Alior Bank already has funding secured for the transaction, having raised PLN 2.2 billion in a rights issue successfully closed in the second quarter of 2016, being the largest rights issue on the Warsaw Stock Exchange since 2009. Approximately PLN 1.6 billion will be deployed to acquire Core Bank BPH, while the remaining part will be used to strenghten Alior Bank’s equity, allowing for further dynamic growth.
On 11 July 2016, Alior Bank announced a tender offer for Bank BPH shares, as a result of which Alior Bank will temporarily become Bank BPH’s significant shareholder. The tender offer might lead to a squeeze out of Bank BPH’s minority shareholders. Upon finalising successful tender offer and meeting all the conditions specified in the share purchase and demerger agreement, a demerger of Bank BPH will be the next step, with Core Bank BPH being acquired by Alior Bank and the mortgage business remaining at Bank BPH. Bank BPH’s share capital will be reduced, and GE Capital will become the sole owner of Bank BPH’s mortgage business.
The acquisition of Core Bank BPH is in line with Alior Bank’s growth strategy, which includes both organic and acquisitive growth, in a combination with stronger rates of return on capital. The transaction is expected to be finalised in the fourth quarter of 2016. As a result of the Core Bank BPH acquisition, Alior Bank will become the 9th largest bank in Poland by assets. The transaction will bring Alior Bank closer to its strategic objective of being one of the top 5-6 largest banks in Poland in the coming years.