DDM, B2Holding acquire HETA distressed assets in Croatia
ZAGREB (Croatia), June 3 (SeeNews) - Switzerland-based DDM Holding and Norway's B2Holding have completed the acquisition of a distressed asset portfolio with gross collection value of 800 million euro ($894 million) in Croatia from Austria's HETA Asset Resolution, the 'bad bank' of former Hypo Alpe Adria International, DDM said.
The portfolio contains secured corporate receivables and has been acquired by a 50/50 joint venture structure of DDM and B2Holding, DDM said in a statement.
"The closing of this acquisition, which represents the single largest transaction in the history of DDM, is expected to significantly contribute towards positive cash collections and generate substantial earnings growth," DDM CEO Henrik Wennerholm was quoted as saying.
The acquisition was financed by cash on hand and internally generated cash flows, the statement said without providing the value of the deal.
HETA Asset Resolution is part of HETA Group, a wind-down corporation owned by Austria. Its statutory task is to dispose of the non-strategic portion of Hypo Alpe Adria, nationalised in 2009, as effectively as possible whilst preserving value.
DDM is a specialist acquirer and manager of distressed asset portfolios in Southern, Central and Eastern Europe, while B2Holding provides debt solutions for banks and institutional vendors.
by Iskra Paviova, published in SeeNews (Business intelligence for Southeast Europe)