Serbia’s Alta Pay Group, which expressed interest in acquiring a stake in Addiko Bank AG this year, has stated that it is unaware of any investigation by the European Central Bank (ECB) into its operations.
According to the Financial Times, the ECB is seeking additional assurances from Alta Pay—recently a shareholder in Addiko as part of a plan to acquire up to 30 percent of the bank—regarding compliance with EU regulations. This scrutiny follows a €150,000 fine levied on Alta Pay last month for failing to report its acquisition of shares, as reported by Bloomberg Adria.
In July, Alta Pay withdrew its request for regulatory approval to acquire a 10 percent stake in Addiko, effectively exiting the bidding process. Serbian businessman Miodrag Kostić, through Agri Europe Cyprus, and Slovenia’s Nova Ljubljanska banka (NLB) were also pursuing shares in Addiko. Bids from both Agri Europe and NLB expired in mid-August, with Addiko proving challenging for both firms.
NLB initially aimed to purchase at least 75 percent of Addiko’s shares but ultimately secured only half. Prior to this attempt, NLB held no shares in the Austrian bank.
Kostić’s Agri Europe already owned a stake in Addiko and sought to acquire an additional 17 percent but was unsuccessful. Notably, just two days before NLB’s bid expiration, the ECB informed Alta Pay and Diplomat Pay that it had temporarily revoked their voting rights in Addiko.
In response to foreign media allegations, Alta Pay informed Bloomberg Adria that the ECB is reviewing their company as a potential buyer of Addiko shares. They indicated that the ECB had prepared a letter outlining concerns about compliance with EU regulations necessary for managing a Eurozone bank, including management structure and anti-money laundering guarantees.
The Financial Times noted that the ECB’s inquiry includes questions about the origin of Alta Pay’s capital, suggesting a lengthy review process. Alta Pay previously stated it was unaware of any ECB investigation and had not been requested for further clarification or documentation since the suspension of their voting rights in August. They argue that assumptions regarding the bank’s operations are unfounded and inaccurate.
Executives at Alta Pay affirmed their full cooperation with regulators, stating that they had provided necessary information about the bank’s financial status, the origin of its funds, and internal controls to both the Austrian Financial Market Authority and the ECB. They emphasized that the bank meets all operational requirements within the EU and dismissed any allegations of illegal activities, as reported by Bloomberg Adria.
