4 February – LAWFUEL – The Law News Network – Allen & Overy has advised Erste Bank der oesterreichischen Sparkassen AG (“Erste Bank”) in connection with its EUR 2.9 billion rights issue (including an over-allotment option of 10%). The deal is the largest in the history of the Vienna Stock Exchange. Erste Bank will use the proceeds of the capital increase primarily to finance the aquisition of a 62% majority stake in Banca Comerciala Romana, the largest bank in Romania, and to improve its own capital base.
Erste Bank offered 58.95 million new shares priced at EUR45 each, and 5.895 million shares to cover over-allotments, an increase of 26.7% of the existing share capital (including the over-allotment option). The offering consisted of a rights issue and a global offering of shares in respect of which rights were not exercised. The global offering was 1.7 times over-subscribed by private and institutional investors (excluding the over-allotment option).
The over-allotment option granted to the underwriting syndicate has been exercised in full.
The Allen & Overy team was led by London-based U.S. senior associate Dorothee Fischer-Appelt and U.S. partner Adam Kupitz, with assistance from U.S. associates Bernd Bohr and Fred Link.
Dorothee Fischer-Appelt commented: “We are delighted to have advised Erste Bank on this prominent transaction that was met by very strong investor demand, which is a reflection of both the unique market position of the bank and the confidence of investors in the Austrian stock market. The value of the ATX has more than doubled since 2004, with many Austrian companies particularly well positioned to take advantage of the opportunities offered by the fast-growing markets of Central and Eastern Europe.”
Erste Bank, Goldman Sachs International and JP Morgan acted as global coordinators and joint bookrunners.
Allen & Overy has developed a strong track record in Austria, having advised on several high profile capital markets transactions over the last two years including the EUR1.11 billion Raiffeisen IPO (the largest IPO in Austrian history), representing VA Technologie AG in connection with a proposed rights offering and its eventual EUR907 million sale to Siemens AG and UBS AG in connection the EUR231 million rights offering by Wienerberger AG.