ALPHA SERVICES AND HOLDINGS S.A.
Alpha Bank enters the Ukrainian market
Alpha Bank announces that it has agreed with the shareholders of the newly established Ukrainian bank OJSC Astra Bank to acquire 90% of the bank's share capital. The transaction does not involve any goodwill and the consideration reflects the value of the bank's endowment capital, which stands at Euro 9 million. Through this acquisition, Alpha Bank enters a rapidly developing market in a large and fast growing country, and aims to create a strong franchise in the Ukrainian financial sector.
The selling shareholders of the bank will remain as executive members of management, as well as partners in Astra Bank with a stake of 10%. Their successful track record in building up banking franchises in the Ukrainian market, coupled with Alpha Bank's financial strength and operational expertise in designing and supporting the rapid expansion of its footprint, provides a sound platform for the implementation of Alpha Bank's organic growth strategy in the region.
Astra Bank is targeting a nation-wide network by 2010 with an interim target of 50 branches by the end of 2008. The bank will service both individual and business customers by offering a wide range of high quality products and services. The partners envisage investing Euro 130 million proportionate to their shareholding to implement Astra Bank's business plan by 2010. This investment will have no impact on Alpha Bank's capital adequacy.
The transaction is expected to conclude in the second quarter of 2008, while all regulatory and other relevant approvals have been obtained.
About Alpha Bank
Alpha Bank, founded in 1879, is one of the largest banks in Greece. With a network in Greece and abroad of 817 Branches at end 2007, Alpha Bank is active in Southeastern Europe, mainly in Romania, Bulgaria, Serbia, Albania, F.Y.R.O.M. and Cyprus. Alpha Bank offers a comprehensive range of financial products and services to private and corporate customers. With approximately Euro 55 billion in assets and about Euro 4.3 billion in equity at 31 December 2007, Alpha Bank generated Euro 850 million in 2007 in net profit attributable to Shareholders. Alpha Bank is listed on the Athens Exchange with a market capitalisation of about Euro 8.3 billion and is a constituent of the Eurofirst 300 Index.
The selling shareholders of the bank will remain as executive members of management, as well as partners in Astra Bank with a stake of 10%. Their successful track record in building up banking franchises in the Ukrainian market, coupled with Alpha Bank's financial strength and operational expertise in designing and supporting the rapid expansion of its footprint, provides a sound platform for the implementation of Alpha Bank's organic growth strategy in the region.
Astra Bank is targeting a nation-wide network by 2010 with an interim target of 50 branches by the end of 2008. The bank will service both individual and business customers by offering a wide range of high quality products and services. The partners envisage investing Euro 130 million proportionate to their shareholding to implement Astra Bank's business plan by 2010. This investment will have no impact on Alpha Bank's capital adequacy.
The transaction is expected to conclude in the second quarter of 2008, while all regulatory and other relevant approvals have been obtained.
About Alpha Bank
Alpha Bank, founded in 1879, is one of the largest banks in Greece. With a network in Greece and abroad of 817 Branches at end 2007, Alpha Bank is active in Southeastern Europe, mainly in Romania, Bulgaria, Serbia, Albania, F.Y.R.O.M. and Cyprus. Alpha Bank offers a comprehensive range of financial products and services to private and corporate customers. With approximately Euro 55 billion in assets and about Euro 4.3 billion in equity at 31 December 2007, Alpha Bank generated Euro 850 million in 2007 in net profit attributable to Shareholders. Alpha Bank is listed on the Athens Exchange with a market capitalisation of about Euro 8.3 billion and is a constituent of the Eurofirst 300 Index.