Shareholders in Hungary's second-largest bank, Kereskedelmi es Hitelbank (K & H), are expected today to formally ratify its acquisition by a consortium made up of Irish Life and Belgium's Kredietbank. The extraordinary general meeting is also scheduled to vote through a capital increase for the bank equivalent to £41 million. The increase, which was agreed as part of the acquisition deal signed by the bank and the consortium in July, will be financed equally by Irish Life and Kredietbank. The consortium is committed to paying the £41 million within 60 days.
The e.g.m. marks the formal closing of the acquisition. In addition to voting through the capital increase, the meeting is also set to ratify Mr Gerry Danaher, Irish Life's head of strategic planning, and Mr David Kingston, Irish Life's managing director, as the company's representatives on the board of the bank.
Mr Paddy McEvoy of Irish Intercontinental Bank has already been appointed as chairman of K & H. Irish Life is expected to make a number of senior management appointments for the life assurance subsidy of K & H, which the Irish company plans to establish. The company is scheduled to be in operation by the start of next year.
K & H is Hungary's second largest commercial bank in terms of branches and its third largest by total assets, which had reached $2.25 billion (£1.5 billion) by the end of last year. The consortium, made up equally of Irish Life and Kredietbank, controls 56 per cent.
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