Israeli Bank Hapoalim Acquires Ukrinbank

According to Bloomberg News, Bank Hapoalim Ltd., Israel’s second-largest bank by assets, has paid USD 136 mln for a 76% stake in Ukrinbank (UKIB: BUY). The acquisition has been conducted in connection with Hapoalim’s international expansion strategy. Alexander Viktorov: The deal valued Ukrinbank at x2.0 P/B, based on the bank’s 2007E equity of USD 87 mln. The acquisition price implied USD 0.0088 per share, a 36% premium to the current mid-market. We maintain our BUY recommendation and target at USD 0.0099.