Alpha Bank Group announces the completion of the “Project Riviera”, after reaching a definitive agreement with OTP Bank Plc (‘OTP’) regarding the acquisition by OTP of 100% of the share capital of Alpha Bank Albania SHA.
The sale process has been the most competitive in the Albanian market in recent years, attracting strong interest from a large number of investors, representing both local and international banking groups.
Today’s binding agreement with OTP exceeded expectations set out in Alpha Bank’s Business Plan “Project Tomorrow”, in terms of profit on exit and is fully aligned with the Group’s commitment to focus its operations on its core markets. At the same time, it envisages solid future development and integration plans for Alpha Bank Albania and its employees, thus safeguarding the interests of the Group’s customer base with operations in Albania.
Decisive step in the implementation of “Project Tomorrow”
- Alpha Bank Group managed to execute this transaction at a P/BV multiple that is significantly higher compared to precedent transactions in Albania.
- Exceeded expectations set out in business plan in terms of profit on exit (Euro 55 million vs Euro 30 million in “Project Tomorrow”).
- The agreement is fully aligned with Alpha Bank Group’s commitment to focus on its core markets. Capital will be released from Albania and channeled into Greece, Romania and Cyprus.
- Quality of counterparty and complementary presence in Central and Eastern Europe will support future cooperation and facilitate Alpha Bank customers’ banking needs in these regions.
New era for Alpha Bank Albania (ABA)
- The Transaction will create a leading banking group in Albania, with a market share of c.11% based on assets, thus continuing Alpha Bank’s successful presence in the Albanian market as well as safeguarding the interests of the Group’s customer base with operations in Albania.
- 23 years after the first branch started its operations in Tirana, ABA with a long-standing history of achievements in the Albanian banking sector, will become part of one of the largest banking groups in Central/South East Europe. As communicated by investors, one of the strongest pitching points of ABA is the high caliber of its management and personnel.
- The transaction will ensure the continuation of provision of high-quality services to ABA’s customer base. In this context, the purchaser, an international bank active in 11 countries, presented solid plans for the future development and integration for ABA and its employees.
Preserving the legacy and expanding regional cooperation
Alpha Bank Group, as per its standard approach, ran a transparent and competitive sale process of the highest international standards, taking special care in its selection process to cater for preserving the legacy of its Albanian operations, ensuring continuity for its customers and its employees, meeting regulatory expectations, and delivering on its business plan. The Transaction with OTP secures all the above and allows the two Groups to explore further areas of mutually beneficial cooperation.