Former Yugoslavia – As part of re-privatization process, Hypo Alpe-Adria-Bank publishes invitation for expressions of interest for purchase of its holdings in Southeast Europe

On 6 November the management board of the Austrian bank Hypo Alpe-Adria-Bank International AG decided to commence the sale of its subsidiary banks and leasing countries in five countries of Southeast Europe: Bosnia and Herzegovina, Croatia, Montenegro, Serbia, and Slovenia.  On the same day, the bank published a notice to the same effect on its website together with a formal sale announcement.  The notice and announcement made no mention of any plan to sell the bank’s leasing subsidiaries in Macedonia (Hypo Alpe-Adria-Leasing DOOEL) or Bulgaria (Hypo Alpe-Adria-Leasing OOD and Hypo Alpe-Adria-AutoLeasing OOD).  The sale process will be carried out through the bank’s financial advisor, Deutsche Bank AG; expressions of interest for participation in the sale process are to be submitted to Deutsche Bank, either in German or English, and must be received by 7 December 2012 at 15:00 (CET).  Hypo Alpe-Adria-Bank states that it would prefer to sell the network of holdings in the five countries as an integral unit, but that it is open to offers for only certain parts of the network of holdings.

Source (notice, with appended sale announcement): Start of the re-privatization process of the South East European network (2012-11-06)

Analysis: The departure of Hypo Alpe-Adria-Bank from Southeast Europe will not affect the banking sector there significantly, as the bank is dwarfed in the region by such other Western banks as Unicredit, Erste Bank, Raiffeisen, Intesa San Paolo, and Société Generale.  See UniCredit Stays Eastern Europe’s Biggest Western Bank (2012-06-28).

The interest rates that the Hypo Alpe-Adria-Bank group is presently offering on deposits by individuals vary considerably depending on the market in question:

Austria: 1.11% per annum for an 11-month deposit of at least 2,500 EUR

Italy: 0%

Slovenia: 3.95% for a deposit of at least one year consisting of at least 400 EUR

Croatia: 3.00% for a deposit of at least year consisting of at least 500 EUR

Bosnia and Herzegovina – Banja Luka: 2.60% for 13-month deposit of 0-2,500 EUR

Bosnia and Herzegovina – Mostar: 2.60% for 13-month deposit of 0-2,500 EUR

Serbia: 5.00% for a 12-month deposit of at least 100 EUR

Montenegro: 5.10% for a 12-month deposit of at least 100 EUR

In earlier news related to another Austrian bank operating in Southeast Europe, on 19 September 2012 it was announced that an EC decision approving a proposed restructuring plan for Volksbank would result in Volksbank needing to sell its subsidiary in Romania by the end of 2017:

Press release by Volksbank: VBAG and Investkredit: European Commission approves state aid for Österreichische Volksbanken-AG and restructuring measures (2012-09-19)

Press release by European Commission: State aid: Commission approves restructuring aid to Austrian bank ÖVAG (2012-09-19)

News article with additional information from Romanian sources: Volksbank to sell off Romanian business as part of EUR 4 billion EU lifeline deal (2012-09-20)

Mark Pleas

Eastern Europe Banking & Deposits Consultant

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