Raiffeisen Bank International Launches Takeover Offer for Addiko Bank
In a major development in the banking sector, Austria’s Raiffeisen Bank International (RBI) has initiated a voluntary takeover bid for all issued and outstanding shares of the local competitor, Addiko Bank. The move signifies RBI’s aggressive growth strategy and its ambition to strengthen its market position in the region.
Details of the Takeover Offer
RBI has offered a cash deal of €23.05 per Addiko share, thereby valuing the bank at a substantial €449.5m ($524.2m). This offer covers all shares currently issued and outstanding, providing a complete opportunity for the takeover. It’s worth noting that the price proposed by RBI aligns with Addiko’s six-month volume-weighted average share price, providing a fair and balanced offer to the shareholders.
The offer signifies a 20% premium to intrinsic equity value calculated through an external valuation, thereby aiming to provide a profitable exit to the stakeholders. However, the offer’s success hinges on a minimum acceptance threshold of over 75% of all issued and outstanding Addiko shares. RBI has clarified that this will not constitute a delisting offer.
About Addiko Bank
Addiko Bank has an interesting history. It came into existence from the restructuring of Hypo Alpe Adria, a Balkan lender that was bailed out by the Austrian state in late 2009. Post restructuring, the group was split. Later, a consortium including Advent International and the European Bank for Reconstruction and Development acquired Hypo’s international network in 2015 and rebranded the business as Addiko Bank.
RBI’s Strategy Behind the Acquisition
The acquisition is a strategic move by RBI to bolster its market position in Croatia, where it already has a presence. Furthermore, the bank plans to leverage the deal to facilitate a return to Slovenia. RBI sees considerable growth potential in corporate and investment banking in Slovenia. It also perceives opportunities in the small- and medium-sized enterprises segment, which could be a significant growth driver.
In line with the transaction, RBI has plans to sell Addiko’s subsidiaries in Serbia, Bosnia-Herzegovina, and Montenegro. The likely buyer for these units would be Alta Pay, a shareholder associated with Serbian businessman Davor Macura. RBI has assured that the sale price for the divested units will at least correspond to their fair market values. It anticipates that this part of the broader transaction will conclude in 2027.
Impact of the Takeover
RBI has projected that the takeover and the planned carve-outs, subject to approvals, should affect its capital ratio by around 10 basis points, excluding its Russian operations. The acquisition is expected to be finalized in the fourth quarter, subject to customary conditions. Completion will depend on regulatory and antitrust approvals, along with other closing requirements.
The Addiko bid follows Raiffeisen’s recent agreement to buy Garanti BBVA’s Romanian unit for €591m, further demonstrating RBI’s expansion strategy.
