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Hungarian OTP Bank eyes expansion in Ukraine with major acquisition
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Ukraine’s government is ready to privatise two state-owned banks, opening doors for potential investors. Hungary’s OTP Bank, which already boasts several branches and ATMs in Ukraine, is eager to seize the opportunity. Notably, just a few months ago, OTP Bank found itself embroiled in controversy, featuring on the Zelenskyy regime’s roster of international war sponsors. This placement ignited heated diplomatic tensions between the two nations.
The Ukrainian government is ready to sell out two state-owned banks. Yuriy Draganchuk, Deputy Minister of Finance for European Integration, said that foreign investors expressed keen interest in buying up two state-owned banks, the Ukrgasbank and the Sens Bank. And Ukraine is prepared to facilitate the transactions.
Reports from the Ukrainian economic publication, Ekonomicheskaia Pravda (EP), indicate strong interest from Western investors in acquiring the Ukrainian banks. Among them, OTP Bank emerges as a potential buyer for Sens Bank.
According to Dragon Capital, the cost of these state-owned financial entities falls within the range of HUF 57-115 billion (EUR 147-297 million). However, the former proprietors of Sens Bank have lodged a legal claim demanding USD 1 billion for its nationalisation, a dispute that remains unresolved as reported by portfolio.hu.
EP wrote that provided the transaction was successful, OTP would merge OTP Ukraine and Sens Bank. As a result, they would create the fourth biggest bank in Ukraine, following the Privatbank, the Oschadbank and the Ukreximbank.