Alior Bank, a unit of state-owned insurer PZU, has signed a deal to buy a 87.23 percent stake in Bank BPH for PLN 1.22 billion. The transaction excludes the franc-denominated mortgage loans portfolio and should be completed by the end of 2016, the banks announced.
Alior will finance the takeover with a rights share issue for existing shareholders.
“Signing the contract for the purchase of the core business of Bank BPH confirms the previously announced intention to actively participate in the consolidation of the banking sector. The merger of the two banks will achieve significant synergies and further increase efficiency,” said the president of Alior Bank, Wojciech Sobieraj.
After the transaction is finalized, Alior Bank will be the 9th biggest Polish bank in terms of assets.