Central European private equity firm Penta Investments has acquired a 88.71% stake in Dexia banka Slovensko, a regular issuer of structured products in the local market.
In regards to the future of its structured product offerings, product manager Barbara Vopalecka told SRP that is too early to comment, however the bank is expected to grow its retail distribution business under its new owners.
This year, Dexia banka Slovensko raised almost €10m for its retail structured deposits, including the latest issue, Currency linked deposit EUR/PLN III, which was initially planned for a size of €3m, but sold €4.5m. Dexia banka Slovensko became the first bank in Slovakia to follow the transparency rules by publicly posting details of its investment transaction sizes.
"Penta Investments as a new shareholder has a sound banking strategy and clear vision. It is focused on expanding the retail bank's activities and continued operations in the municipal sector," said Dexia banka Slovensko CEO Stefaan Depaepe.
The transaction is part of an agreement with the European Commission reached in February 2010 that provides for the disposal of Slovensko by Dexia before 31 October 2012. The share purchase agreement has been signed on standard terms and is subject to the approval of the National Bank of Slovakia and the Antimonopoly Office of the Slovak Republic. The deal is expected to be completed during the first quarter of 2011. In the meantime, Dexia Group will continue to support Dexia banka Slovensko to ensure a smooth transition.