Austria’s Raiffeisen Bank International (OTC:RAIFY) announced late Thursday that it is making a takeover offer for Addiko Bank that places the smaller lender’s equity at 449.5 million euros, equivalent to $524.2 million. The Vienna-based bank has proposed a cash payment of 23.05 euros for each Addiko share.
Raiffeisen noted that the 23.05 euro per-share offer corresponds to Addiko’s volume-weighted average share price over the past six months. The bidder also stated the figure represents a 20% premium to the intrinsic equity value derived from an external valuation.
By contrast, the offer sits at nearly 13% below Addiko’s last recorded closing price of 26.00 euros, a gap that the announcement highlights alongside the valuation rationale.
The transaction is expected to reach completion in the fourth quarter. Raiffeisen framed the acquisition as a strategic move to strengthen its market share where it already operates in Croatia and to facilitate a reentry into the Slovenian market.
In detailing the rationale for the purchase, Raiffeisen identified specific areas of opportunity in Slovenia, naming corporate and investment banking and the small- and medium-enterprise segment as focal points for potential growth once the acquisition is integrated.
The offer’s alignment with the six-month volume-weighted average price and the reference to an external intrinsic equity valuation form the financial basis Raiffeisen presented to justify its cash bid. The timetable given by the bidder places the closing in the fourth quarter, leaving the market to evaluate the proposed deal and its implications for competition and market positioning in Central and Southeastern Europe.
Key points
- Raiffeisen is offering 23.05 euros per Addiko share in cash, valuing the company at 449.5 million euros ($524.2 million).
- The offer equals Addiko’s six-month volume-weighted average share price and is described as a 20% premium to an external intrinsic equity valuation.
- The acquisition aims to strengthen Raiffeisen’s market share in Croatia and to reestablish the bank in Slovenia, with targeted growth in corporate and investment banking and the SME segment.
Risks and uncertainties
- The offer price is nearly 13% below Addiko’s last closing share price of 26.00 euros, a gap that could influence stakeholder response to the proposal.
- The transaction is described as expected to close in the fourth quarter, indicating timing and completion remain subject to events and approvals before the stated period.