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Hypo Group Alpe Adria AG acquired by Advent International and EBRD

Funds advised by Advent International (Advent) and the European Bank for Reconstruction and Development (EBRD) have acquired Hypo Group Alpe Adria AG, with its Southeast Europe banking network (SEE) from Heta Asset Resolution, the wind down asset of the former Hypo Alpe Adria owned by the Republic of Austria.

The acquisition was formally closed today following all conditions agreed in the Sales and Purchase Agreement (SPA) signed on 22 December, 2014 being met.
 
The Group’s Management Board will be led by newly appointed Group Chief Executive Officer (CEO) Ulrich Kissing. Johannes Proksch will act as CFO, Stefan Selden as CRO and Rainer Sichert as COO and Head of Sales. The Group’s Management team will be further strengthened, with details to be announced in the coming weeks. Additionally, the regional management teams in Croatia, Serbia, Slovenia, Bosnia-Herzegovina and Montenegro have been confirmed. The SEE banking network will continue to be headquartered in Klagenfurt, Austria, and operate under an Austrian banking licence.
 
Advent and EBRD agreed to pay a purchase price in the range agreed upon in the SPA, which is subject to HGAA meeting certain thresholds until the end of 2015. Existing liquidity lines of approximately EUR 2.2 billion secured by the Republic of Austria will remain in place. The parties have agreed to conditions for the repayment of these credit lines over the coming years.
 
Dr Christian Stoffel (pictured), Director at Advent International in Frankfurt, says: “Hypo Group Alpe Adria has a strong balance sheet, secure long-term funding and already serves some 1.2 million customers through 250 branches. Together with the management team and EBRD, we will act as supportive owners to reposition and further strengthen the Group as one of the top five banks in the region.”
 
Nick Tesseyman, EBRD Managing Director, Financial Institutions, says: "As co-owner we are committed to contributing to delivering outstanding services to retail, SME, public and corporate clients in Croatia, Slovenia, Bosnia and Herzegovina, Serbia and Montenegro with a view to establishing the Group among the top five banks in the region. The EBRD will bring finance and expertise to secure the sound development of a banking group with a vital role for the local economy in the countries where it operates.”
 
Building on its existing branch network in Croatia, Serbia, Slovenia, Bosnia-Herzegovina and Montenegro, Advent and EBRD are seeking to expand HGAA’s retail and SME business with the clear aim to outperform market growth rates, while remaining a solid partner for corporate and public clients.
 
Hypo Group Alpe Adria operates with a capital ratio of more than 20 per cent, has long-term liquidity funding of more than EUR 2 billion and a clean loan portfolio with Non Performing Loans of around 12 per cent. 
 
Advent has a long track record of investing in Central and Eastern Europe. Over the past 20 years the firm has invested in over 40 companies in Central and Eastern Europe and in more than 60 companies in the business and financial services sector worldwide.

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