Stmt.re Acqn. by Novabank
Banco Comercial Portugues S.A.
26 October 2001
BCP SUPPORTS NOVABANK PROPOSAL TO ACQUIRE SITEBANK IN TURKEY
Banco Comercial Portugues (BCP, NYSE: BPC) as majority shareholder states full
support of NOVABANK's announcement made today of its acquisition proposal for
SITEBANK submitted to Saving & Deposits Insurance Fund of Turkey (SDIF). BCP is
confident on the success of the outlined banking project and strongly believes
that the total investment mentioned will not exceed 50 million Euros. In order
to provide further information we are pleased to herein enclose NOVABANK
detailed press release.
'Novabank submitted official proposal for the acquisition of Turkish Bank
Sitebank
Athens, 26th October 2001 - NOVABANK S.A. a Greek bank with headquarters in
Athens, announces today that they submitted a proposal to acquire SITEBANK A.S.,
a Turkish commercial bank headquartered in Istanbul. The total estimated
investment, including the proposed acquisition price, as well as the estimated
future IT, branches, marketing and personnel restructuring costs and the cover
of carried-forward losses, will not exceed Euro 50 million (fifty million
Euros).
SITEBANK has currently 13 branches in 6 cities in Turkey, total assets of Euro
31 million, and 223 employees. SITEBANK has been under Government control and
possession (through SDIF) since July 2001 following the liquidity crisis and
accumulated losses suffered by the Bank in December 2000.
NOVABANK acquisition proposal excludes a number of assets and liabilities,
branches and staff that do not fit the future strategy to be implemented in case
it succeeds on its bid. The project for the Turkish market is to develop a
specialized operation focusing on upper-middle and affluent individuals segment.
The total potential of this market segment is estimated to be of 300.000
individuals, heavily concentrated on the three largest cities, which is
sufficient to provide critical mass. NOVABANK market research shows that this
segment is not adequately serviced, in spite of the numerous banks operating in
the country, including a number of foreign banks. NOVABANK believes that
SITEBANK can successfully penetrate this market segment with a value position
based on consistent high quality personalized advice and service, comprehensive
offering of basic and asset management/investment products, and convenient
delivery through a variety of distribution channels.
NOVABANK, with the support of its majority shareholder BANCO COMERCIAL
PORTUGUES, the leading Portuguese bank, has the ability for superior execution
and, in spite likely prevailing short to medium term risks and volatility, has
the willingness to pursue this promising growths opportunity.
NOVABANK
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