Zivkovic Samardzic has advised on the merger of Eurobank a.d. Beograd with Direktna Banka a.d. Kragujevac, via an absorption of Direktna by Eurobank Serbia. GO2Law advised Direktna on English law matters, with Milbank advising both banks on English law. Schoenherr reportedly advised Eurobank Serbia on the deal as well.
Eurobank Beograd is the Serbian subsidiary of Eurobank S.A., itself a subsidiary of Eurobank Ergasias Services and Holdings S.A. The transaction remains contingent on regulatory approval.
The Eurobank Group is a banking group active in six countries, with total assets of EUR 67.7 billion and 11,394 employees. According to Zivkovic Samardzic, “established in 1990, the Group expanded through organic growth to become a leading force in Greek banking sector. In Serbia, Eurobank (after two successful acquisitions – Postanska Banka and Nacionalna Stedionica) is today among the leading foreign investors and financial institutions.” According to the firm, “Direktna is a modern, domestic and universal bank, whose business strategy is focused on business with the population and the economy. It was created by the purchase of KBM Bank, then Findomestic BNP Paribas and Piraeus Bank a.d. Beograd, which formed a strong and stable financial institution.”
The combined bank – Eurobank Direktna – will have total assets in excess of EUR 2 billion and total equity above EUR 300 million. The combined bank’s market share will exceed 6.5%, in terms of total loans, making the bank the seventh-largest in Serbia.
After the completion of the transaction, Eurobank will control approximately 70% of the combined bank while Direktna’s shareholders will own the remaining 30%. According to Zivkovic Samardzic, “both parties have committed to a growth-oriented business plan, incorporating ambitious expansion targets that will allow the combined bank to finance the Serbian economy and grow profitably in the next few years. Part of the transaction is the payment of a dividend/capital return to Eurobank. The transaction is capital neutral for Eurobank and earnings per share accretive by 3% post synergies.”
Zivkovic Samardzic’s team included Partners Branislav Zivkovic, Uros Djordjevic, Igor Zivkovski, and Sava Pavlovic.
GO2Law's team was led by Hugh Owen.