Hungary’s OTP receives two bids for its Romanian subsidiary

Hungarian financial group OTP received two bids for its Romanian subsidiary, but it is reportedly not happy with the higher offer placed by the leader of the local market by assets, Banca Transilvania.

Banca Transilvania is reportedly ready to pay a sum equal to 70%-80% of OTP Romania’s own funds while the parent group evaluates its subsidiary at par (100%), according to Profit.ro.

OTP Bank Romania is the tenth largest bank by assets in the country, with a total of RON 20 billion (EUR 4 billion) at the end of June. Own funds were RON 2.1 billion at the end of June, which puts Banca Transilvania’s offer at RON 1.4-1.6 billion (around EUR 300 million).

The selling process has reportedly been delayed by the interest expressed by the other bidder, Raiffeisen Bank Romania (the fifth-largest bank in Romania by assets).

OTP Bank Romania took over Millenium Bank in 2014, and the National Bank of Romania (BNR) blocked its attempt to acquire Banca Romaneasca in 2018 after the two sides had reached an agreement in 2017.

In May this year, OTP group officially put up for sale its Romanian subsidiary.

(Photo source: OTP Bank Romania)