The board of Polish Getin Holding and Serhiy Tigipko’s TAS Group signed a purchase and sale agreement for Idea Bank on Friday, with the base amount of the deal amounting to $34 million, according to a press release from the group on Friday and a stock exchange announcement from the holding.
According to the statement, the buyer of 100% of the shares is Alkemi Limited (Cyprus), a member of the TAS group, and the transaction is subject to the approval of the Antimonopoly Committee of Ukraine and the National Bank of Ukraine, and is governed by English law and the requirements of the Warsaw Stock Exchange.
Idea Bank Ukraine operates in the retail banking segment and focuses on servicing individuals. The bank’s main products are cash loans, credit cards, deposits, current accounts and debit cards. As of August 1, 2024, total assets of Idea Bank amounted to UAH 11.72 billion, ranking it 27th among 62 Ukrainian banks. Its equity capital as of that date amounted to UAH 1.74 billion, and net profit for the first seven months of this year was UAH 417.3 million.
TAS Group is one of the largest financial and industrial groups in Ukraine, which is represented in banking, insurance, railcar building, metallurgy, packaging materials, logistics, agriculture, food industry and real estate.
The group owns Universal Bank and TAScombank with assets of UAH 134.34 billion and UAH 36.62 billion, respectively, ranking 9th and 16th in the market by this indicator. The agreement stipulates that if the closing date is later than December 31, 2024, Alkemi Limited will pay Getin Holding an additional $0.8 million for each full calendar month starting from January 2025.
Idea Bank (formerly Plus Bank) was founded in 1989. In June 2020, the deal to sell Idea Bank to Ivan Svitek, former CEO of Alfa-Bank (Kyiv), and Ukrainian investment company Dragon Capital was terminated: the parties failed to agree on its commercial terms within the timeframe set by the agreement. Later, Dragon Capital and Svitek managed to buy Unex Bank from Vadym Novynskyi’s Smart Holding before the war.
In late February 2022, Getin Holding announced that it had failed to sell Idea Bank for the second time. The agreement on the terms of sale of its 100% stake to Rinat Akhmetov’s First Ukrainian International Bank (FUIB, Kyiv), signed on November 10, 2021, was terminated due to the failure to meet all the conditions for the transfer of ownership by February 25. Following the termination of the agreement with FUIB, Getin Holding abandoned its plans to sell its Ukrainian subsidiary amid Russia’s ongoing military aggression against Ukraine.
On March 27, 2023, the National Bank of Ukraine recognized the business reputation of both the Polish holding and its main owner, Czarnecki, as impeccable. In this regard, the Ukrainian regulator temporarily deprived Getin Holding of the right to vote on 100% of Idea Bank’s shares and set a one-year deadline for the holding and its main owner Leszek Czarnecki to eliminate the violation, and a year later refused to return the voting rights to the holding. In addition, the NBU approved Jacek Piechota, President of the Polish-Ukrainian Chamber of Commerce, as a trustee of Idea Bank.
In Poland, as a result of the decisions of the Bank Guarantee Fund, the Polish Idea Bank became part of Pekao Bank, while Getin Noble Bank was also put into rehabilitation, changed its name to VeloBank and was sold to the American fund Cerberus Capital Management LP at the end of March this year.
At the end of April this year, the NBU gave Getin Holding six months to sell its 100% stake in the authorized capital of Idea Bank. In addition, a similar demand was made of Mr. Charnetsky, who was required by the NBU to sell 44.98% of Idea Bank to Getin Holding within six months, offering as an alternative to sell Charnetsky’s stake in Getin Holding or LC Corp BV, which belongs to him, to LC Corp BV, which owns 34.17% of Getin Holding.
The applicant for the purchase of Idea Bank (Lviv) and New Finance Service LLC (NFS, Kyiv) informed the bank and company’s parent Getin Holding S.A. (Poland) that it will not submit a binding offer to purchase them, according to a report from Getin Holding on the Warsaw Stock Exchange.
“Due to the end of the talks, the exclusivity for negotiations granted to the bidder has expired,” the holding said.
“[The Board] has decided today to continue the process of selling Idea Bank Ukraine shares and participation in NFS, while deciding to entrust Rothschild & Co with further activities aimed at selling 100% of Idea Bank Ukraine shares and 100% share in NFS, including in particular, conducting talks and negotiations with other potential investors,” Getin Holding said.
As reported, Getin Holding S.A. (Wroclaw) on February 5 signed an agreement with a Ukrainian buyer for the sale of 100% of the shares of subsidiary Idea Bank (Lviv) and 100% of the shares of NFS. According to market sources, Alfa Bank was the likely buyer of the bank, but officially this information has not been confirmed.
Idea Bank (formerly Plus Bank) was founded in 1989. According to the National Bank of Ukraine, as of January 1, 2021, Idea Bank ranked 25th in terms of total assets (UAH 7.914 billion) among 73 operating banks.
NSF is engaged in debt recovery, financial and insurance intermediation.
Polish Getin Holding S.A. (Wroclaw) on February 5 signed an agreement with a Ukrainian buyer for the sale of 100% of the shares of subsidiary Idea Bank (Lviv) and 100% of the shares of New Finance Service (Kyiv), Getin Holding S.A. has said.
According to a report on biznes.pap.pl, the parties plan to close the potential deal by September 30, 2021.
Before that the buyer will conduct due diligence the companies, and after a positive result of the due diligence the parties will proceed to agree on the terms of the potential transaction.
Getin Holding also reports that the company granted the buyer exclusive rights for negotiations until April 30, 2021.
Idea Bank (formerly Plus Bank) was founded in 1989. As of January 1, 2020, its sole shareholder was the financial group Getin Holding S.A. (Poland).
According to the National Bank of Ukraine, as of October 1, 2020, Idea Bank ranked 24th among 74 operating banks in terms of total assets (UAH 8.057 billion).
The net profit of Idea Bank (Lviv) amounted to UAH 77.254 million in January-September 2020, which is 73% less than in the same period of 2019 (UAH 285.564 million).
According to a report on the bank’s website, for the third quarter its net profit amounted to UAH 44.95 million, which is 61.5% less than in the third quarter of last year (UAH 116.57 million).
The net interest income of Idea Bank increased by 7% to UAH 1.258 billion in the nine months compared to the corresponding period of 2019.
The bank’s assets decreased by 11.9% to UAH 4.76 billion in January-September 2020, including loans to customers by 9.1% to UAH 3.76 billion.
The bank’s liabilities have decreased by 11.2% to UAH 3.98 billion since the beginning of the year, including customer funds by 10.95% to UAH 3.73 billion.
The bank’s net worth during this period decreased by 15.4% to UAH 784.22 million, the charter capital remained at the level of UAH 298.742 million.
Idea Bank (former Plus Bank) was founded in 1989. Its sole shareholder as of January 1, 2020 was the financial group Getin Holding S.A. (Poland).
According to the National Bank of Ukraine, as of September 1, 2020, Idea Bank ranked 24th among 75 operating banks in terms of total assets (UAH 8.287 billion).
The Antimonopoly Committee of Ukraine (AMC) has allowed the Cyprus company Dragon Capital Investments Limited to acquire a controlling stake in Idea Bank (Lviv) in the amount of 193,318 shares, which is 64.7106% of the total number of shares of the bank, the press service of the AMC has told Interfax-Ukraine.
As reported, Poland’s Getin Holding S.A. on December 20, 2019 signed an agreement on the sale of 100% of the shares of Ukraine’s Idea Bank and 100% of New Finance Service LLC (Kyiv) to a group consisting of Dragon Capital Investments Limited (Cyprus), Dragon Capital New Ukraine Fund L.P. and an individual.
According to a report by Getin Holding on the Warsaw Stock Exchange, the purchase price in euros is equivalent to UAH 1.368 billion, or PLN224.76 million, excluding the amount of dividends before closing the transaction and the price of 100% participation in New Finance Service of about UAH 5 million. The price can also be reduced as a result of negotiations between the parties after an independent auditor prepares a report, the document says.
According to him, it is expected that the transaction could be completed before May 31, 2020.
Getin Holding in October 2019 put Idea Bank up for sale. On October 22 it announced the signing of a letter of intent with the Direct Investment Fund.
Idea Bank (formerly Plus Bank) was founded in 1989.
Idea Bank ranked 24th out of 76 operating banks as of October 1, 2019 in terms of total assets (UAH 7.510 billion), according to the National Bank of Ukraine.
