Arad-based commercial bank West Bank will be bought by a powerful Italian financial group, Cardine Banca S.p.A from Bologna, which had 37 billion euros in assets at the end of last year, sources on the banking market told Ziarul Financiar.
The deal is to be announced today. Cardine Banca S.p.A Group will buy 75% in West Bank from several natural and legal persons, Romanian and foreign.
The above-quoted sources say the Italian investor will allegedly pay some ten million dollars for the stake. At present, West Bank has 186.03 billion lei in share capital, that is approximately 6.4 million dollars. The 75% in the capital account for 4.8 million dollars.
At the same time, Cardine Banca pledges to have the share capital increased to 500 billion lei at a later time.
West Bank's main shareholder, Societatea de Investitii Financiare (Financial Investment Company- SIF) Banat-Crisana, which holds 22.64% in the capital, will keep its stake.
Ziarul Financiar's attempt to reach West Bank's president Cornel Pirtea for a statement met with "no comment." However, he mentioned he would provide details about this transaction after the signing of the contract.
In case the transaction is concluded, Cardine Banca will be the fourth Italian group to have come to Romania's banking market over the past year.
Although Italy is Romania's main commercial partner, and the Italian companies are among the most important investors, no bank had entered the banking sector in Romania before last year.
One of the oldest Italian banks, Monte dei Paschi, last year bought 5% in Alpha Bank Romania in a $1 million deal. The next to come was Veneto Banca Group, which bought 80% in Banca Italo-Romena for more than $10 million.
Despite Italo-Romena's being an Italian bank, legally, its operations will focus mainly on Romania. Also in late last year, one of the most powerful financial groups in Italy, Banca di Roma, opened a branch in Bucharest.
West Bank was established in 1996 by a group of Romanian and foreign businessmen from Ardeal and SIF Banat-Crisana.
The bank became operational in June 1996, registering 12bn lei in share capital (some $4 million). The capital was gradually increased, according to NBR's requirements, by asset reassessment, inclusion of profits, dividends and cash.
West Bank was deemed as a small bank that had kept a low profile until last year. Its name appeared in several stories run by the press about the credits to Cibela Group. The bank has always a good image in general, with its reputation not having been smeared by uncertainties about its financial status.
West Bank has opened 11 branches so far, most of them in Transilvania, and focused its development strategy on SMEs.
Cornel Pirtea, the bank's president, early in the year was telling Ziarul Financiar that West Bank would eventually be sold or it would merge with another bank, as the shareholders felt, "the lack of financial power makes it hard to withstand competition."
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