Failed attempt of sale of Hypo banks in the Balkans

Sale of Hypo Alpe Adria bank network in SEE to consortium of the American fund, Advent and EBRD failed. Yesterday by midnight, sales agreement should have been signed, APA reminds, outlining that there was no agreement with respect to the contract.

Deadline for the contract signing has already been extended once but it was not the case now. In the next weeks, tender will partially be formulated and the sales process will not be halted. Due to failed attempt when it comes to sales agreement, Advent does not have exclusive rights anymore in the sales process although it does stay in the race.

On Wednesday, EBRD approved the work with Advent when it comes to acquisition of Hypo in the Balkans, stating it will take over 20% of this business for which EUR,50 m was set aside. Now bidders who failed in the previous round can give their offers again. After the state agreed initially with Advent/EBRD, it was found out the best offer came from Chine but after deadline expired so it was not taken into consideration.

It takes a few weeks to release a new tender which Fimbag, a state-owned holing which took over the Hypo network in the Balkans so signing of the contracts is not expect before the first few months next year. The European Commission set a deadline , to Austria to solve the issue of Hypo bank by mid next year.