Israel’s largest bank, Hapoalim, announced the acquisition of a 75.8 percent stake of the Ukrainian Innovation Bank for $136 million
Israel’s largest bank, Hapoalim, announced the acquisition of a 75.8 percent stake of the Ukrainian Innovation Bank (Ukrinbank) for $136 million.
The sale of Ukrinbank confirms continued strong interest among foreign strategic investors toward the Ukrainian banking sector, according to the Kyiv-based investment bank Dragon Capital, which acted as financial adviser in the deal.
The acquisitions of 20 Ukrainian banks have attracted $6.8 billion since 2004, according to Dragon analyst Oleh Pronin. He said that a third of the banks were acquired in 2007, with UniCredit Group’s recent acquisition of Ukrsotsbank for $2.2 billion and Commerzbank’s takeover of a 60 percent stake in Forum Bank for $600 million representing the two largest acquisitions of that year.
“The acquisition of control of Ukrinbank is an important step in Bank Hapoalim’s entrance into key former Soviet markets. Following our thorough analysis, I am certain that Bank Hapoalim will be able to take advantage of the great potential in Ukraine, like other leading international banks,” explained Zvi Ziv, Hapoalim Bank CEO.
Hapoalim Chairman Dani Dankner said in addition to Ukrinbank, Hapoalim has expanded to Turkey and Kazakhstan.
As of September 2007, “foreign-owned banks accounted for 34 percent ($28.3 billion) of Ukraine’s total banking assets, 42 percent ($8.9 billion) of retail loans and 31 percent ($13.1 million) of corporate loans.
“We also forecast that further activity in the sector will lift the share of foreign banks over 47 percent of total banking assets in 2008,” Pronin said.
Established in 1989, Ukrinbank is one of the oldest private banks in the country, with 30 branches that service more than 80,000 customers, including 23,000 business clients.
