Volksbank sold to Mediterranean Bank

Austria's part-nationalised Volksbanken AG has sold its Volksbank Malta unit to Mediterranean Bank.

After carving out its international business last year, the Maltese business has total assets worth around €150 million, Volksbanken said in a statement.

The contract was signed on Friday and closing of the deal will take place after regulatory approval, it added. KPMG Corporate Finance and the Schoenherr law firm advised Volksbanken, it said.

Mediterranean Bank entered into an agreement with VB-Holding Aktiengesellschaft and Mithra Holding Gesellschaft m.b.H. to acquire 100% of the share capital of Volksbank Malta for cash consideration of €35,300,000. Mediterranean Bank has also agreed to refinance existing debt of Volksbank Malta to Österreichischen Volksbanken AG.

Volksbank Malta has operated as a fully licensed Maltese Bank since 2002 and has provided banking services to the Maltese retail and corporate sectors. After taking into account the carve-out last year of its international business, Volksbank Malta has total assets of approximately €150 million and equity of approximately €56 million.

Pro forma after tax profits of Volksbank Malta for the period ended 31 December 2012, after taking into account the carve-out of Volksbank Malta’s international business, were approximately €605,000.

Mediterranean Bank expects that the purchase of Volksbank Malta will consolidate and expedite its Maltese growth strategy through Volksbank Malta’s portfolio of Maltese clients which is complementary to Mediterranean Bank’s existing customer base and aligned with its future growth strategies.

The purchase is expected to be completed in the coming weeks, subject to receipt of required approvals from relevant governmental and regulatory authorities.