Today, the Hungarian State Privatization Agency (APV) is to announce the winner in the Postabank privatization tender. APV has confirmed that three binding bids were submitted for the state's 100% stake in Postabank. The Hungarian press has speculated that Erste Bank, HVB and Budapest Bank (owned by GE Capital) were the bidders. Erste Bank and HVB reportedly submitted the highest bids, each at approx. HUF 65 bil.-70 bil. (EUR 257 mil.-277 mil.). Their bids are moderately higher than the price that we consider as reasonable for the stake: HUF 62 bil. (EUR 245 mil.).
Should Erste acquire Postabank, it would increase its market share in Hungary to almost 8% and, merged into “new” Erste Bank Hungary (EBH), it would become the fifth-largest bank in Hungary in terms of total assets (EUR 2.8 bil.). The new EBH would have the second-largest branch network in the country, with more than 200 branches (vs. OTP's 427).
Jan Hajek