First Investment Bank AD (Fibank) has signed with the Hungarian MKB a share purchase agreement to acquire 100% of shares of MKB Unionbank

First Investment Bank AD (Fibank) has signed with the Hungarian MKB a share purchase agreement to acquire 100% of shares of MKB Unionbank. The transaction will be closed after the customary regulatory approval process.

Fibank is a dynamic institution which ranks third in terms of assets in the Bulgarian banking sector with a market share of 8.4% and second in terms of depositor trust, which is evident in the amount of deposits from private individuals where Fibank has a market share of over 13%. Fibank holds 10% market share in loans to businesses and 15% market share in credit cards. MKB Unionbank ranks 15th in the banking system with BGN 1.5 billion as at 31.06.2013 according to data from the Bulgarian National Bank.

After the acquisition of MKB Unionbank Fibank’s assets will amount to a total of more than BGN 8.5 billion, underlining Fibank's commitment to the Bulgarian market and the strengthening of its leading position as the largest domestic financial institution group. The Bank will offer a wide range of products to its customers, with an emphasis on lending to small and medium-sized enterprises, as well as to private individuals, while operating in a bigger branch network.

The acquisition will increase the Bank's efficiency, allowing it to offer even better and more competitive services to private individuals, businesses and society, thus maintaining Fibank’s commitment to social responsibility.

Fibank and MKB Hungary have reached a mutually beneficial agreement, addressing both parties' strategic goals. Lazard Ltd (global financial advisory firm) alongside with First Financial Brokerage House acted as lead adviser to Fibank and Stephenson Harwood and Tsvetkova, Bebov & Partners acted as its legal advisers.