ZAGREB SHARES SOLD FOR 301 MILLION EUROS ZAGREB, Dec 17 (Hina) - The State Agency for Savings Insurance and the Financial Reorganisation of Banks (DAB) on Friday signed the contractual documents on the sale of 66.3 per cent of
Privredna Banka Zagreb (PBZ) shares for 301 million euros to the Banca Commerciale Italiana (BCI) from Milan. The DAB will keep 25 per cent plus two PBZ shares and the transaction will be completed by the end of January. The privatisation of the PBZ completes the process of the bank's financial reorganisation which started in December 1996 and included restructuring and reorganisation. The reorganisation costs amounted to 2.35 billion kuna for which the state issued bonds, said the president of the PBZ management board, Bozo Prka. The Croatian National Bank (HNB) Council today approved the sale of PBZ shares and the central Italian bank is expected to make a decision in early January, Prka said,
ZAGREB, Dec 17 (Hina) - The State Agency for Savings Insurance and
the Financial Reorganisation of Banks (DAB) on Friday signed the
contractual documents on the sale of 66.3 per cent of Privredna
Banka Zagreb (PBZ) shares for 301 million euros to the Banca
Commerciale Italiana (BCI) from Milan.
The DAB will keep 25 per cent plus two PBZ shares and the transaction
will be completed by the end of January.
The privatisation of the PBZ completes the process of the bank's
financial reorganisation which started in December 1996 and
included restructuring and reorganisation. The reorganisation
costs amounted to 2.35 billion kuna for which the state issued
bonds, said the president of the PBZ management board, Bozo Prka.
The Croatian National Bank (HNB) Council today approved the sale of
PBZ shares and the central Italian bank is expected to make a
decision in early January, Prka said, adding this was a formality.
Expressing satisfaction with the privatisation process, Finance
Minister Borislav Skegro said PBZ's privatisation was the final
step toward the definite stabilisation of the Croatian banking
system, which, he reminded, was in one of its most difficult periods
at the end of last and the beginning of this year.
Skegro said it was very important that the two largest foreign
investments this year - in the Croatian Telecommunications and the
PBZ - had come from the countries which were traditionally
Croatia's economic partners.
BCI representatives said their entering into the PBZ ownership
structure as partners was aimed at securing the bank's long-lasting
business. They also believe the PBZ could become the country's
leading bank. This assessment was supported by Prka, who, according
to an announcement by BCI's Enrico Meuccio would remain at the head
of the bank.
DAB director Mladen Sunjic announced the privatisation of another
two Croatian banks. The final date for submitting bids for the
purchase of the Rijecka Banka is December 22 and it is expected the
process will be completed in January, Sunjic said, adding the
privatisation of the Splitska Banka would be completed
simultaneously.
By merging with the Banca Intesa, the Banca Commerciale Italiana
became part of Italy's largest banking group. The bank has a very
developed business abroad, including 371 branches and 25
representations in 42 countries.
(hina) rml