Greek REIT, Stirling Properties Bulgaria seek to merge - regulator Greek real estate investment company NBG Pangaea and Bulgarian real estate investor Stirling Properties Bulgaria have asked for clearance to merge.The merger is expected to affect the real estate market in Sofia, the Commission for the Protection of Competition (CPC) said in a statement. The Greek fund will acquire the unfinished mall under the name of Plaza West that is situated in Sofia’s neighborhood of Lulin, next to the ring road. The value of the deal is assessed to EUR 33 million. Plaza west disposes with commercial area of 24 350 square meters. The complex should have been opened in April 2014, but its launch was postponed with a year. NBG Pangaea’s assets are assessed to EUR 1.6 billion. It is founded by National Bank of Greece, which is owner of the Bulgarian United Bulgarian bank. NBG Pangaea mainly operates in Greece. Sofia-based Stirling Properties Bulgaria was set up in 2012 and is 100%-owned by a Luxembourg-based real estate company.
Source: Dnevnik (06.01.2015)

Profits of banks in Bulgaria up to BGN 196 million The profit of banks in Bulgaria in end-February 2015 was formed mainly by the profits of the first five banks. They were put in the first group by BNB and include UniCredit Bulbank, DSK Bank, First Investment Bank (Fibank), United Bulgarian Bank (UBB), and Raiffeisen Bulgaria. They account for 80.6% of the total positive result of the system, or BGN 158 million. The third group includes six branches of foreign banks in Bulgaria. Their profit amounts to BGN 7.4 million. The total amount of bank profits for the first two months of the year stood at BGN 196 million, or BGN 47 million more than the same period in 2014, BNB reports.
Source: investor.bg (01.04.2015)

Bulgaria's Bulstrad buys non-life insurer UBB AIG The Vienna Insurance Group said its Bulgarian unit Bulstrad has entered into an agreement to fully acquire non-life insurer UBB AIG and conclude a cooperation agreement with the United Bulgarian Bank (UBB). The acquisition allows the group to diversify its portfolio in Bulgaria and to increase - in the sense of multi-channel distribution strategy - its sales potential, VIG said in a press release. "Bulgaria is one of our core markets. Bulstrad took advantage of the opportunity to acquire UBB-AIG and strengthen its market presence," VIG CEO Peter Hagen said in the press release. "Moreover, this new distribution channel allows us to open up further customer segments." In May Bulstrad said it planned to acquire full control over UBB AIG in a deal worth EUR 3.2 million. UBB-AIG was established in 2006 as a bank-assurance company for UBB. In 2014 it recorded EUR 4.5 million in premiums and a net result of BGN 1.38 million.
Source: money.bg (03.06.2015)

Bulgarian unit of Greece’s Eurobank EFG to acquire local branch of Greece's Alpha Bank Bulgaria’s Postbank, a unit of Greece’s Eurobank EFG, signed on Friday a memorandum of understanding for the acquisition of Alpha Bank’s Branch in Bulgaria, the two banks said in a joint statement. "The proposed transaction is fully aligned with Alpha Bank’s restructuring plan, as approved by the European Commission in 2014, and its commitment to focus its operations only on its core markets," the two banks said in a statement published on Postbank's website. "It also serves ideally Postbank’s strategy to expand its operations and further enhance its presence in the Bulgarian market as one of the most stable and sustainable financial institutions with assets of more than EUR 3.2 billion," the statement added. The deal covers the entire banking operations of the Alpha Bank Branch, which consists of deposits worth EUR 254 million and gross loans worth EUR 410 million. It is expected to be completed by the end of the year following the execution of definitive transaction documentation and the obtaining of all approvals required to complete the proposed transaction in Bulgaria, Greece and from the relevant bodies in the European Commission. The deal will strengthen Postbank's market position in the Bulgarian banking sector and expand its customer base in both the retail and corporate business banking segments, the statement added. Following the completion of the acquisition, Postbank will become the fourth largest bank in Bulgaria ranked by deposits and loans. Its network will consist of more than 200 locations thoughout Bulgaria. "The proposed transaction is expected to contribute positively to Postbank’s pre-provision income from the second year of combined operations and significantly improve its coverage ratios, while it maintains its strong capital ratios above 20% and substantial liquidity buffers well above the regulatory requirements," the banks also said.
Source: Capital (20.07.2015)

Piraeus 'in Talks' with NBG Group to Merge into Bulgaria's UBB Greece-based Piraeus Bank is negotiating with the National Bank of Greece (NBG) group over a potential merger into United Bulgarian Bank, owned by NBG, media reports suggest. None of the two Greek lenders has yet commented on the reports of the Greek-language news website Euro2Day. If confirmed, this might make Bulgaria the first Southeastern European market where the structure of Greek banks will have been successfully overhauled as part of the anti-crisis measures. This comes after Postbank, a subsidiary of Greece's Eurobank operating in Bulgaria, announced in mid-July it was taking over the Bulgarian branch network of Greek lender Alpha. As of the moment (before Postbank and Alpha's deal has been finalized), four Greek banks, including Eurobank and Alpha Bank, control around a fifth of Bulgaria’s banking assets which has raised concerns of contagion from the Greek crisis. Unlike Alpha Bank Bulgaria, which is a branch of Greece’s Alpha Bank and operates under the supervision of Greek banking authorities, the other three Greek lenders run subsidiaries, which are supervised by Bulgaria’s central bank. If both deals are closed smoothly, only two Greek banks, Eurobank and NBG, will remain present on the Bulgarian market. Greek banks have been under pressure from the European Commission to focus on the domestic market and limit their foreign exposure within the next two years, according to Greek newspaper Kathimerini. However, Greek banks hope to maintain their businesses in countries where they have a strong presence, Greek Reporter has said. According to Euro2Day's story, no similar mergers are expected for the moment in Romania, since the economy of Bulgaria's northern neighbor is still growing and Greek lenders there are facing a better outlook.
Source: econ.bg (03.08.2015)

DSK Bank’s owner buys Greek banks Hungarian OTP Bank, which is the owner of DSK Bank is said to acquire some of the Greek banks in Bulgaria, Romania or Serbia. This was announced at a briefing late last week by Laszlo Benchik, Deputy CEO of the banking group. The statement was made in Budapest after the presentation of financial results of OTP Group in the second quarter. If this happens, the financial group may expand its presence in Bulgaria, where it already owns DSK Bank - the second largest credit institution in the country.
Source: Standart (21.08.2015)

Bulgarian Banks Jan-Sept Profit Up 32% Y/Y Commercial banks in Bulgaria posted BGN 795 M net profit for the first nine months of 2015, an increase of 32% year-on-year and 7% above the figure for the whole of 2014, the central bank has said. The nine-month profit of the 28 commercial banks doing business in Bulgaria was also higher than the earnings of BGN 780 M posted for the post-crisis year 2009, investor.bg noted in its coverage of the news. The Bulgarian banks’ profit had been falling for five years in a row starting in 2008. The first increase was registered in 2013. The banks’ profit rose last year as well. The Bulgarian National Bank (BNB) attributed the improved profitability of the banking sector on an annual basis in January-September mainly to lower interest expenses as well as higher income from commission and fees and decreased impairment costs. The assets of the banking system increased in the third quarter with the balance sheet total of the sector increasing by BGN 1.6 B, or 1.9%, to BGN 85.5 B. The liquid assets of the banking sector increased by BGN 1.4 B between end-June and end-September, reaching BGN 25.1 B.
Source: Capital (02.11.2015)

Postbank buys Alfa bank’s business in a matter of days Deal for purchase of Alfa bank’s branch in Bulgaria from Postbank will end in a matter of days. In October bank authority issued needed permit. At present process of terminating the deal is going on. Now Postbank is sixth in terms of assets, while after the merger it will become fifth, if financial results for the three quarters of the year are taken into consideration. After merger is completed there will be three banks in Bulgaria whose mother companies are Greek. These are Eurobank, United Bulgarian Bank and Piraeus. Last year the European commission approved plans for restructuring of the fourth basically important banks in Greece, each one of which has a branch in Bulgaria. The latter envisages in general terms separation with strategic assets and focus on banks’ core markets. The sale of the branches of Alpha Bank in Bulgaria to Postbank is the first such deal for the local market. After the deal Postbank will accept all the banking activities of the branch of Alpha Bank, which at the date of announcement of the transaction had a total value of BGN 500 million, as well as loans for more than BGN 800 million.
Source: Capital (05.11.2015)

According to the central bank's data about the condition of the banking system in Bulgaria, banks have registered profits exceeding BGN 900 million in the first ten months of 2015. They have made BGN 111 million in profits this October alone, compared to just BGN 60 million in October of last year. 2015 turned out to be one of the most profitable years for Bulgarian banks. Profits in the banking system have risen by 35 per cent on an annual basis. The topic is covered by most newspapers.
Source: 24 chasa (02.12.2015)

Milk factory for serial entrepreneurs Against EUR 6 million insured by the fund Empower Capital and Georgi Stoimenov, My Day’s factory will have a new future. Due to the bankruptcy of the Italian group Co.Da.P owner of the Bulgarian milk-processing company Codap and its obligations to local banks, assessed to EUR 50.1 million in the summer of 2015 the company was announced for sale by Unicredit Bank. Equity fund Empower Capital, which manages funds under the JEREMIE program, and Bulgarian investment company Uneeda Industries see the potential to refinance its obligations as against it they have an option to acquire nearly 50% stake in the newly formed company, named Kremio. The latter has already acquired commercial enterprise Codap. Empower Capital and Uneeda Industries grant mezzanine financing of EUR 6 million to Kremio so that the company acquires commercial enterprise from creditor banks (UniCredit Bulbank and UBB). Furthermore it repaid liabilities amounting to EUR 5.1 mln. The amount is shared equally between the two financial partners. Empower Fund manages EUR 15 million under the JEREMIE initiative of the European Investment Fund (EIF), investing in shares in small and medium-sized growing companies. Uneeda Industries invests in various companies. The plan now includes doubling turnover in the next 3-4 years from the current BGN 35 million and increase in profit before tax, amortization, interest and depreciation (EBITDA) to 18-20%. In the last year the index is about 14%. One of the particulars of the new targets for the dairy company is to more aggressively increase its sales (by about 10% per year) both on the domestic and foreign markets.
Source: Capital (12.12.2015)

The last Sofia-based mall continues to be built by a new owner Greece real estate fund NBG Pangàea acquired 89.4% of the second Luylin-based mall, under the name of Plaza West. The value of the deal is EUR 23 million. The deal became real almost a year after the anti-monopoly authority gave green light for it. Back in January the Greece fund said that there will be a purchase only if the mall is completely built. Yet the construction remained unfinished, which resulted in a lower price. The opening of the mall was planned for this summer, put it was again postponed. For Plaza West it’s a consecutive delay. Initially the trade center had to be opened in the spring of 2014. Seller is Greek Marinopoulos, which holds Carrefour stores in Bulgaria. The company buyer NBG Pangaea is registered by UBB’s owner-National bank of Greece back in 2010. At present the company owns and manages a portfolio of properties, where almost all basic administrative buildings of the bank, as well as its offices in different towns of Greece.
Source: Dnevnik (22.12.2015)

Shareholders want the removal of Fund Estates’ management Removal of management of Fund Estates (former Benchmark Fund Estates) is what a group of shareholders who together hold less than 5% of the capital of the public company required. It was established as a special purpose investment vehicle. The reason for this is a deal concluded back in 2014, with which, without requiring approval by the general meeting of shareholders, the underlying asset of the leasing company - an office building, located at Tsarigradsko Shosse Boulevard was sold. In that way revenues from its tenants go to its buyer and thus Fund Estates relies on leasing installments that go for repayment of its bank loans to UBB. Shareholders would have lost benefits if the rent exceeds the lease payment. Therefore, small owners want to know who the real owner of the company buyer of the asset is as it is hidden behind the names of offshore companies Seychelles. The management of the company includes B and B International, Vesselin Genchev and Dobromir Andonov. The controversial deal was signed for EUR 23 mln. in leasing installments of about EUR 230 thousand per month plus interest for 10 years or in full payment of the building. The intermediary buyer is founded in March of last year company, named Unique Properties.
Source: Capital (22.12.2015)