Erste Group Bank AG

Government of Hungary and EBRD join forces - Seite 3

In the proposed transaction, the Government and the EBRD will each have the right to appoint one non-executive member of the Board of Directors and one member of the Supervisory Board of Erste Bank Hungary. The purchase price will be negotiated between Erste and the two parties based on market valuation methods after conduct of a due diligence with support from external advisors, as is customary for similar M&A transactions. Through its participation in Erste, the EBRD will support the partnership between Erste and the Hungarian Government. The EBRD is considering this partnership to support Erste, which is still subject to internal approvals, while it rebuilds momentum in Hungary over the coming years and intends to exit once this is achieved. As such, the EBRD's investment is expected to be structured with a pre-agreed exit to Erste Group after an agreed period of time. Erste Bank Hungary will remain majority owned by Erste Group, managed and controlled in line with Erste Group Governance principles and the Group Code of Conduct.

The transaction is subject to all necessary approvals required from Hungarian or European banking supervisory and competition authorities.



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emitter: Erste Group Bank AG address: Milchgasse 1, 1010 Wien country: Austria contact person: Thomas Sommerauer/ Simone Pilz phone: + 43 (0)5 0100 - 17741 e-mail: [e-mail] website: www.erstegroup.com

ISIN(s): AT0000652011 (share) stock exchanges: official trade in Vienna

[ source: http://www.pressetext.com/news/20150209026 ]