Preliminary Decision Reached on Sale of Hypo SEE Holding to Advent International

Hypo Alpe-Adria-Bank International AG (HBInt.) yesterday reached a preliminary decision to sell all shares in Hypo SEE Holding AG (the Southeast European network in which it operates) to Advent International, with the European Bank for Reconstruction and Development (EBRD) also joining the deal, reports the Patria news agency.

This decision was subject to a final decision by the Republic of Austria, as the owner, and approval by the management boards of the buyers - Advent International and EBRD. The contractual documentation between the parties will enter into force after the Republic of Austria, as the owner, reviews it and upon fulfillment of further conditions for closing the transaction.

Dr. Herbert Walter, Chairman of the Supervisory Board of Hypo Alpe-Adria-Bank International, welcomed the sale: “Hypo Alpe Adria has received several offers for its network of banks in Southeast Europe. This tells us that foreign investors continue to value the role that Hypo Alpe Adria plays in the Balkans as a leading provider of financial services. The bank management teams conducted intensive negotiations until the very last moment. The ability and strategy to continue successfully running this network's business were key criteria for making such a decision. With a successful sale, the future prospects for Hypo Alpe Adria and its operations through the network in Southeast Europe, and thus for the 3,900 employees in branches in this region, will remain intact.”

The Southeast European bank network includes equity stakes in six banks operating in five countries (Slovenia, Croatia, Bosnia and Herzegovina, Serbia, and Montenegro) with total assets of approximately 8.4 billion euros, 245 branches, and 1.15 million clients.

The involved parties initially agreed to keep the sale price confidential. At the same time, HBInt. stated its willingness to maintain its refinancing lines, which led to a strong determination during the sales process to find a serious buyer.

Walter stated: “We believe that the consortium of Advent International and EBRD is an attractive combination. The consortium offers a very attractive combination of experience and knowledge in the field of capital markets, particularly regarding the Eastern European market. At the same time, we believe the consortium is a good partner that offers us the necessary certainty that the refinancing of 2.2 billion euros, which remains within the SEE network, will be repaid.”

The sale of the SEE network represents the best possible path to meet the requirements of the European Commission and the Federal Government of the Republic of Austria.

The sale will separate SEE Holding from HBInt., as required by regulators. As previously announced, HBInt. will be transformed into a legal entity tasked with resolving non-performing assets without a banking license and will henceforth operate as Heta Asset Resolution.

Restructuring of the Management Boards of HBInt. and Hypo SEE Holding

There have also been certain changes in the management boards of HBInt. and SEE Holding. The Chairman of the Management Board of HBInt., Dr. Alexander Picker, and Management Board member Dipl.-Kfm. Rainer Sichert, MA, have resigned from their positions at HBInt. In the context of the bank's restructuring process, they will assume new functions in the management board of SEE Holding. Mag. Stefan Selden, who was previously responsible for the Group's Credit Sector, becomes a new member of the Management Board responsible for risks at SEE Holding. The Management Board of HBInt. will therefore currently consist of Mag. Johannes Proksch and Dr. Rainer Jakubowski.