Hapoalim, Ukrinbank sign $136m deal

Bank Hapoalim acquires 76% of Ukrinbank's holdings, giving it controlling interest in one of east Europe's oldest banking establishments. 'Acquisition made as part of Hapoalim's desire to increase global activities,' says bank's chair
Ynet

Bank Hapoalim announced Thursday it had purchased controlling interest – 76% – of the Ukrainian Innovation Bank (Ukrinbank) for a reported $136 million.

Founded in 1989, Ukrinbank is one of the Ukraine's oldest financial establishments, with some $280 million in holdings and $85 million in equity to its credit.

Ukrinbank's main activities are with small and medium businesses and private clients. Its 30 branches and 100 affiliates service 80,000 patrons through 24 of the Ukraine's 25 provinces; its headquarters are located in Kiev.

Hapoalim chairman Dan Dankner told Ynet that "The acquisition was made as part of Hapoalim's desire to increase its global activities, including in emerging markets.

"Ukrinbank will join Turkey's Bank Pozitif and Kazakhstan's DKB in allowing our clients to establish new financial and commercial contacts in these new financial markets," he added.

Zvi Ziv, CEO of Hapoalim, had this to add: "Having the controlling interest in a financial establishment as Ukrinbank is a major step in Hapoalim's activities in the former Soviet Union's leading markets.

"I am confident we will be able to use the Ukrinbank's potential as one of the world leading foreign banks of offer a variety of financial services."