Romanian Banca Transilvania’s shares surge after Volksbank takeover

Banca Transilvania’s takeover of Volksbank Romania was positively received by investors on the Bucharest Stock Exchange. The bank’s shares have gained 16% since April 7, when its representatives announced the details of the transaction. Banca Transilvania’s shares are trading on the Bucharest Stock Exchange with the ticker TLV. The share price went up by 4.2% on Tuesday, April 14, one hour after the market opening. They reached RON 2.49 per share while the bank’s overall capitalization went up to EUR 1.47 billion, which is a seven-year high. Banca Transilvania announced it paid some EUR 710 million for Volksbank Romania, taking over EUR 2.78 billion worth of assets. The deal helps the Cluj-based bank move to the second place in the local banks’ ranking, surpassing BRD-Groupe Societe Generale. BRD’s shares have also increased in the past days. On Tuesday morning, BRD shares gained 2.3%, going up to RON 9.82. Since April 7, the bank’s shares moved up almost 6%. Banca Transilvania and BRD have helped the main local stock index, BET, gain 3.8% since April 7. The BET thus passed the 7,300 mark moving closer to its five-year high. Andrei Chirileasa, andrei@romania-insider.com