The bank will later sell 25% to the European Bank of Reconstruction and Development.
Bank Hapoalim (LSE: BKHD; TASE: POLI) will acquire full ownership of Moscow-based SDM Bank for $155 million, reflecting a multiple on shareholder's equity of 3.2. SDM had $48 million in shareholder's equity at the end of the third quarter of 2007.
Bank Hapoalim will later sell 25% of RBD to the European Bank for Reconstruction and Development at the same value. The bank may make a further capital injection into SDM at a later stage to increase its shareholder's equity.
Bank Hapoalim declined to comment on the report.
Published by Globes [online], Israel business news - www.globes.co.il - on December 10, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007