Raiffeisen Bank International AG (RBI) has signed an agreement on the acquisition of 100 per cent of the shares of Equa bank (Equa bank a.s. and Equa Sales and Distribution s.r.o.).
Equa bank focuses on consumer lending and serves just under 480,000 customers. The proposed acquisition is part of RBI’s strategy to expand its presence in selected focus markets.
RBI will acquire Equa bank from AnaCap Financial Partners (AnaCap), a specialist financial services private equity investor, through its Czech subsidiary Raiffeisenbank a.s.
The business models of Equa bank and Raiffeisenbank are complementary and the transaction will lead to strategic synergies as well as enhanced digital capabilities, according to RBI.
The acquisition of Equa bank is also expected to have an impact on RBI’s CET1 ratio of approximately 30 basis points, which RBI says is based on a pro-forma CET1 consolidation as of year end 2020 but the final impact is subject to completion accounts at closing.
As of year-end 2020, Equa bank had total assets of more than €2.8 billion, while Raiffeisenbank a.s. reported total assets of €15.7 billion.
Closing is expected around the end of Q2 this year. On the basis that deal completion is successful, there is a plan to merge Equa bank with Raiffeisenbank to allow for the realisation of the identified synergies.
The transaction is subject to a successful closing and regulatory approvals.
