The Slovenian Sovereign Holding announced the signing of the Sale and Purchase Agreement pursuant to which NKBM will acquire 100% of the shares of Abanka.

Last week, the Slovenian Sovereign Holding, as a representative of the Republic of Slovenia, announced the signing of the Sale and Purchase Agreement pursuant to which NKBM will acquire 100% of the shares held by the Republic of Slovenia in Abanka.

Abanka is Slovenia’s third-largest bank with around 9% of the market share by assets. The Bank was valued at EUR 511m (Total Consideration), including a dividend in the amount of EUR 67m which was paid out to the seller in May 2019, prior to the signing of the sale and purchase agreement. This would put the transaction at P/B of 0.99 and P/E of 7.79.

The closing of the transaction is subject to receiving all applicable authorisations and approvals from the relevant authorities.

NKBM is the second largest bank in Slovenia with around 15% of the market share by total assets. In 2016 NKBM was privatized, during which, Apollo Global Management, a private equity fund from the USA acquired 80% of the shares. It is noteworthy that the European Bank for Reconstruction and Development holds the other 20% stake.

The mentioned acquisition is particularly interesting as NKBM’s market share will increase closely to the one of NLB, which will put them competitively closer to NLB.