Dragon Capital Advises on Acquisition of Ukrinbank by Bank Hapoalim
Kyiv, December 20, 2007 — Investment bank Dragon Capital has acted as sole financial adviser in the sale of a 75.8% stake in Ukrinbank, Ukraine’s 46th-largest bank by assets, to Bank Hapoalim of Israel.
Bank Hapoalim agreed to buy the stake in Ukrinbank for $136m, putting the market capitalization of Ukrinbank at $179.4m ($0.009 per share), or 39% above the Ukrainian bank’s current market capitalization. The deal implies a 2007E P/BV of 2.27.
The sale of Ukrinbank confirms continued strong interest among foreign strategic investors towards the Ukrainian banking sector. Dragon Capital continues to be one of the leading advisers on M&A transactions in Ukraine’s banking sector, having assisted Piraeus Bank of Greece in its acquisition of Kyiv-based International Commercial Bank earlier this year as well as advising Austria’s Erste Bank on its purchase of Bank Prestige in 2006.
“Given the much tighter competition in the Ukrainian banking industry at present due to the entry of a number of large international players, it is increasingly important for local small- and mid-sized banks to attract a strong strategic partner to maintain their market position. Ukrinbank owners have properly assessed this trend and made the right decision in our view,” said Mykola Korol, director of investment banking at Dragon Capital.
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