Erste Group plans tender offer for up to 26% of Erste Bank Polska

Erste Group Bank announced plans on Friday to execute a tender offer aimed at acquiring up to 26% more shares of Erste Bank Polska. The Austrian financial institution currently holds a 49% stake in Poland's third-largest bank by assets. Erste Group secured its controlling position in Erste Bank Polska earlier this year, following a purchase from Santander as part of its strategy to expand in Central and Eastern Europe.

The tender offer is set to commence in November at roughly 713 zloty ($185.95) per share, presented in cash. This offer is valued at 11.7% less than Erste Bank Polska's closing price of 807.6 zloty on Friday. Erste Bank Polska's shares have experienced a remarkable 48% increase this year, resulting in a market value of 82.5 billion zlotys ($21.51 billion). Erste Group itself has a market value of approximately $54 billion, based on its outstanding shares.

Erste Group intends to elevate its stake in Erste Bank Polska beyond 50%, while ensuring it remains below 75% to meet minimum free float requirements. The bank will utilize its internal resources to fund the acquisition. Erste Group expects to maintain a Common Equity Tier 1 ratio of over 14.25% post-transaction. As of the end of the first half of the year, its CET1 ratio stood at 15.2%.