Italy’s doValue is set to acquire majority stake in Financial Planning Services (FPS), the loan service unit of Eurobank.
The Italian financial service company signed an agreement to acquire a 80% stake in the business for €248m. The deal values FPS at €310m.
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FPS operates as a Eurobank’s loan collection unit in the Greek market. Specifically, it manages non-performing loans (NPLs) approved by financial institutions.
The divestment will enable Eurobank to shed €7.5bn in impaired loans, Reuters reported citing sources familiar with the matter. The Greek lender, grappling with growing NPAs, is currently pursuing a plan to clean –up its balance sheet.
In a statement, Eurobank CEO Fokion Karavias said: “With this milestone agreement, we are entering the final stages towards completion of our accelerated plan for the cleanup of our balance sheet.”
On the other hand, the deal will increase doValue’s footprint in Greece as a loan servicing company.
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By GlobalDataKaravias added: “We are delighted for an agreement and the beginning of a long-term partnership with doValue, which – adding FPS to its existing business in Italy and Spain – is set to establish itself as the top loan servicer and REO manager in South Europe.”
With more than €64bn in assets, Eurobank Group operates across in Greece, Cyprus, Luxembourg, Serbia, Bulgaria and UK.
According to its website, it has 730 customer service locations.
