The tender winner in the Bulgarian DSK Bank privatization should reportedly be announced any day now. Erste Bank and the Hungarian OTP bid EUR 293 mil. and EUR 311 mil., respectively, for the 100% stake in the state-owned DSK Bank, No. 2 on the Bulgarian market. A contract should be signed in several weeks. DSK's privatization is scheduled to be completed by the end of August.
We evaluate the stake at EUR 288 mil., based on audited consolidated 2002 figures.
Separately, Erste indicated yesterday that it would open as many as 40 new branches in Hungary if it failed to purchase the state-owned Postabank, which is to be privatized this or next year, Bloomberg reported. Erste Hungary currently has 80 branches and seeks to increase its market share from 5% to 20-25% within five years. We consider the target as very ambitious.
Also separately, Erste holds its AGM today; a 2002 gross dividend of EUR 1.24 per share is expected to be approved (the ex-dividend date is May 9).
Jan Hájek