KBC Delists Bulgaria's CIBank after Upping Stake to 100%

Jan Vanhevel, KBC Group CEO, is pictured here with Tsvetelina Borislavova. Photo by Sofia Photo Agency

Belgian bank KBC Group NV announced it will delist Bulgaria's CIBank from Sofia stock exchange after raining its stake in it to 100%.

Belgian banking group KBC acquired full control over its subsidiary in Bulgaria CIBank after the prime minister's long-time live-in girlfriend Tsvetelina Borislavova sold her last 16% stake.

The price of the deal exceeds BGN 141 M or BGN 110.49 per share.

The deal makes KBC the sole shareholder of the company and it does not affect KBC's capital position.

"Through CIBank and DZI Insurance, KBC is the main bancassurance player in Bulgaria, with a dense network for distributing banking and insurance products," Jan Vanhevel, KBC Group CEO commented.

He assured that KBC has identified Bulgaria as one of the group's strategically important home markets.

KBC agreed to buy 75% in the bank, initially called EIBank, for EUR 295 M in September 2007 and secured the approval of both the central bank and competition authorities at the end of the year.

The group bought half the stake of board chairwoman Tsvetelina Borislavova and the full stake held by Novator investment fund, which manages the Bulgarian assets of Icelandic mogul Thor Bjorgolfsson.

That was the second major acquisition by the Belgian group in Bulgaria, having agreed earlier that year to buy 70% in insurer DZI, later boosting its stake to 85%.

Initially Borislavova kept 22,3% of her shares and became "KBC's partner", keeping her position as chair of the supervisory board.

Subsequently KBC launched a buyout offer to the minority shareholders in the bank and gradually increased its capital.

Bulgaria's Economic and Investment Bank (EIBank) changed its name to CIBank in October 2008 without giving reasons for its decision.

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