January 2017 – Kinstellar is delighted to have successfully advised the Belgian KBC Group on the EUR 610 million acquisition of the fourth biggest bank in Bulgaria, United Bulgarian Bank (UBB), and of the third biggest leasing company in Bulgaria, Interlease, from the National Bank of Greece (NBG).
Once completed, the acquisition would make KBC the biggest bank-insurance group in Bulgaria, in terms of assets, with a market share of approximately 11%. KBC already owns CIBANK and DZI (an insurer) in Bulgaria, and through this transaction it will also enter the leasing business in the country.
Kinstellar acted as the main legal adviser to KBC on the transaction, including the due diligence process and the negotiation of the transaction documents. Linklaters’ offices in Brussels and London advised on EU regulatory matters, and were also involved in the negotiations of the share purchase agreement.
The Kinstellar team was lead by partners Diana Dimova and Anthony O’Connor and comprised Counsel Antonia Mavrova, Of Counsel Desislava Fessenko, Managing Associates Svilen Issaev, Mladen Minev and Nina Tsifudina, and Associates Stiliyana Ivanova, Vanya Shubelieva, Plamena Deliyska and Vladimir Sotirov (among others).
Diana Dimova, Partner in Kinstellar’s Sofia office, who led the Kinstellar team, comments: “We are pleased to have had the opportunity to advise KBC Group on this landmark acquisition in Bulgaria. It was challenging, yet rewarding, to perform a full-scope legal due diligence of a large financial group within a demanding timeframe. This project was a great opportunity for our team to showcase its solid expertise in the banking and financial services sector”.
Anthony O’Connor, Partner in Kinstellar’s Budapest office and firm-wide Co-head of the Private Equity practice, who led the transactional workstream of the project, adds: “We are indeed proud to have advised on such a significant transaction in the CEE region, and look forward to providing continued support to KBC as it becomes the largest bank-insurance group in Bulgaria following completion of the transaction.”
For more information please contact Anthony O’Connor, Partnet, at.