ZAGREB, Feb 25 (Hina) - The State Agency for the Insurance of Saving Deposits and the Financial Rehabilitation of Banks (DAB) on Friday announced its decision on the selection of the Bayerische Landesbank as the exclusive negotiator
in the process of privatisation of the Rijecka Bank. "We expect that an agreement on the privatisation of the Rijecka Bank will be signed in the near future in continuation of negotiations with the Bayerische Landesbank," DAB director Mladen Sunjic said.
ZAGREB, Feb 25 (Hina) - The State Agency for the Insurance of Saving
Deposits and the Financial Rehabilitation of Banks (DAB) on Friday
announced its decision on the selection of the Bayerische
Landesbank as the exclusive negotiator in the process of
privatisation of the Rijecka Bank.
"We expect that an agreement on the privatisation of the Rijecka
Bank will be signed in the near future in continuation of
negotiations with the Bayerische Landesbank," DAB director Mladen
Sunjic said. #L#
The DAB board was deciding about the bids of the Bayerische
Landesbank and Banca di Roma at a session held behind closed doors
in Zagreb on Friday.
The Bayerische Landesbank was selected as the better bidder, Sunjic
said, adding that both offers were acceptable and equal, however,
the DAB board chose the offer of the German bank after a careful
study of all relevant selection parameters and an assessment of
effects the offer would have on the Croatian banking sector as a
whole.
According to some estimates, negotiations with the German partner
could be completed in about four to seven weeks.
In the process of privatisation of the Rijecka Bank the strategic
partner should acquire 51 percent of the bank's shares by selling
part of its capital and by increasing share capital. The state would
keep 25 percent + two shares (the so-called control package) in
order to be able to control strategic decision-making. The rest of
the shares would be owned by more than 1,000 small shareholders.
The privatisation of the Rijecka Bank started following the bank's
financial rehabilitation and restructuring. The decision on the
rehabilitation was adopted in February 1996 and the state invested
little over 550 million kuna (DM137.5 million) of bonds into the
bank's rehabilitation.
Of Croatia's four rehabilitated banks, the Rijecka Bank is the
third to undergo the process of privatisation. The privatisation of
the Slavonska Bank and Privredna Bank has already been completed.
Once the Rijecka Bank is privatised, the same process will be
conducted in the Splitska Bank. Italy's Unicredito bank has already
submitted an offer for the privatisation of the Splitska Bank.
According to its total assets, the Rijecka Bank is the fourth
largest bank in Croatia. An unrevised report on the bank's
operation shows that in 1999 the Rijecka Bank realised a profit of
105 million kuna (DM26.25 million).
(hina) jn rml