Hungary's OTP Bank in talks on its biggest acquisition to date (updated)

Banca Transilvania

26/04/2024 11:43

(Adds background and quotes throughout)
       BUDAPEST, April 26 (Reuters) - Hungary's OTP Bank
 OTPB.BU  is preparing for its biggest acquisition so far after
making an indicative offer to a bank operating in the European
Union, its CEO said.
    Sandor Csanyi, the chief executive of central Europe's
largest independent lender, declined to give further details on
Friday, citing ongoing negotiations.
    "Yesterday we made an indicative offer to buy a bank, if
this deal goes through, it'll be the biggest acquisition of OTP
Group," he said.
    OTP Bank is also preparing to broaden its presence in
Ukraine, as it expects the privatisation of state-owned banks in
the country to begin soon. 
    "We would like to use our capital there for investments and
further acquisition," Csanyi said. 
    OTP's shares were trading up 1.5% on Friday morning,
outperforming Hungary's BUX index. 
    OTP Group had a record year in 2023 with a profit of 990
billion forints  ($2.7 billion). The group plans to pay a 535
forint ($1.46) dividend per share.
    Earlier this year, OTP signed a binding agreement with Banca
Transilvania  ROTLV.BX  to sell its stake in OTP Bank Romania
for 347.5 million euros ($373 million)
($1 = 0.9316 euros)
($1 = 365.9700 forints) 

 (Reporting by Boldizsar Gyori; Editing by Alexander Smith)
 ((Boldizsar.Gyori@thomsonreuters.com;))