AGREEMENT BETWEEN ZABA, FOREIGN PARTNERS PRESENTED

ZAGREB, May 15 (Hina) - The agreement on strategic partnership between the Zagrebacka Banka (ZABA), Italy's Unicredito bank and Germany's Allianz AG reinsurance company is important for all partners and it will help ZABA preserve its identity, operative independence and domestic management, the president of the Zagrebacka Banka Management Board, Franjo Lukovic, said on Tuesday, adding the partnership would provide the Zagrebacka Banka with regional primacy in financial transactions. The agreement on strategic partnership between the Zagrebacka Banka d.d. and the consortium comprising UniCredito Italiano and Allianz AG was supported by the Zagrebacka Banka's Supervisory Committee and Management Board yesterday and presented to the public today. The signatories said this was not a merger but strategic partnership. The Zagrebacka Banka Supervisory Board has supported a recommendation in an Invitation to Bid to shareholders to sell their shares. After it obtains all necessary internal and external permits, including consent from the Croatian National Bank (HNB), the consortium will offer the bank's shareholders to buy their shares in order to acquire further 55.03 percent of voting shares. The offer is aimed at acquiring a total of 75 percent of shares plus one share. This would enable UniCredito to, together with its current share, have 60 percent of voting shares while Allianz AG would acquire some 15 percent of voting shares in the Zagrebacka Banka Main Assembly. The offer for the purchase of shares is open until July/August this year, the bidding would last three weeks, and the bid procedure should be completed in August/September. Domestic shareholders will be able to obtain cash instead of UniCredito shares at a price of USD 238.5 per share. HNB Governor Zeljko Rohatinski said today the HNB Council would consider the consortium's request by summer or at its July session at the latest. The Council will consider direct and indirect effects of this agreement on the entire banking sector as well as on the independence of the monetary policy, Rohatinski said. (hina) sb rml