Given the exchange rate and the value of Banca Transilvania shares on Bucharest Stock Exchange Wednesday, the value of the transaction could be EUR53.4 million.
“EBRD has reduced its equity stake in Banca Transilvania. On 22 November, the bank sold 104.5 million shares, representing 2.9 per cent of Banca Transilvania’s share capital, through a private placement led by the investment firm Wood & Company. Following the sale, the EBRD remains Banca Transilvania’s largest shareholder, with an 8.6 per cent stake,” EBRD said.
EBRD acquired a 15% stake in the Romanian lender in 2001 to strengthen Banca Transilvania’s capital base and support the expansion of its activities and loan portfolio. Since then Banca Transilvania has grown into the third-largest bank by assets in Romania, EBRD said.
“We are very pleased with our longstanding partnership with Banca Transilvania and the company’s outstanding achievements over the past years, notably its strong position as an innovative and fast-growing locally owned bank in Romania. (…) The bank’s robust and adaptable business model, its proven ability to face headwinds with speed, openness and transparency, and its committed and highly experienced management make Banca Transilvania a strong, resilient and experienced lender. As a continuing shareholder, the EBRD remains confident of Banca Transilvania’s future prospects. By reducing our stake we are helping to increase the liquidity of Banca Transilvania shares on the Bucharest Stock Exchange, while we continue to support the bank’s long-term growth strategy,” Lucyna Stanczak-Wuczynska, EBRD Director for EU Banks, said.
The EBRD is a leading institutional investor in Romania, having invested over EUR7.3 billion to date in 384 projects and mobilized more than EUR14 billion from other sources of financing.