Société Générale shares are a little higher Monday, amid news it will sell its Polish-based Euro Bank, to Millennium Bank, a subsidiary of Banco Comercial Portugues, (BCP). The deal, worth PLZ1.83 billion, will reduce SocGen’s risk weighted assets by €2 billion.
By around 1245 BST, SocGen shares were 0.14% lower at €33.18. It had moved as high as €33.28, earlier in the Monday trading session, following the news.
SocGen sells Euro Bank
Société Générale said earlier Monday it had agreed to sell its wholly-owned, Polish-based Euro Bank, to Millennium Bank, which is 50.1% owned by BCP.
The deal, worth around $483 million, will allow SocGen to reduce its risk-weighted assets by €2 billion. It will also improve the Group’s CET 1 ratio by 8 basis points, the French bank said.
“The sale of Euro Bank is a further step in the execution of Société General’s Strategic and Financial plan “Transform to Grow”, whose primary objectives are to focus and develop its presence on markets and activities with a critical size and the potential for generating synergies with other Group businesses,” said Philippe Heim, Deputy SocGen CEO.
“International Retail Banking activities are a profitable growth engine for Société Générale Group and we are committed to pursue their development,” Heim added.
Bank Millennium’s plans
Bank Millennium said the transaction would allow it to expand its position in the Polish Banking sector. It added that once the transaction completes – likely in the first half of 2019 – it would become the sixth largest Polish bank, by retail clients.
“Millennium BCP informed the market in July 2018 that we would begin a cycle of growth built on strengthening our distinct competencies,” said Millennium bcp CEO, Miguel Maya.
“This acquisition occurs in a market with high growth potential and has been carefully analysed given the importance Millennium bcp’s committee places on rigorous management of capital and business risk,” Maya said.