In August 2013, Hypo Real Estate Holding AG (HRE Holding) began the process of selling its subsidiary DEPFA Group. A decision was made by the Federal Republic of Germany’s inter-ministerial steering committee in May 2014 not to privatise DEPFA Group but to transfer it to FMS Wertmanagement AöR (FMS-WM), the German government’s winding-up institution for the nationalised HRE Holding AG.
On 19 December 2014, FMS-WM acquired 100% of the shares in Irish bank DEPFA and quickly established a new DEPFA management team who rolled out a targeted business plan focusing on preserving capital and winding down the balance sheet of the Group in a manner designed to maintain value. On 14 July 2020 FMS-WM announced a public sale tender to sell 100% of the shares in DEPFA BANK plc in an open, transparent and competitive auction sale process. Following the completion of the public sale tender, FMS-WM announced on 15 February 2021 that ist was selling its 100% investment in DEPFA BANK plc to Austria’s BAWAG P.S.K.
On 19 November 2021, BAWAG P.S.K. AG acquired 100% of the shares in Irish bank DEPFA BANK plc, and its then subsidiary DEPFA ACS BANK DAC (DEPFA ACS), from FMS-WM and continue the DEPFA business model of preserving capital and winding down its portfolio in a manner designed to maintain value. As an independent bank, DEPFA is regulated by the Central Bank of Ireland and subject to Irish banking and supervisory law.
DEPFA ACS successfully completed a scheme of arrangement in August 2021, redeeming all its remaining covered bonds and then applied to revoke its status as a designated credit institution authorised to issue asset covered securities and to revoke its banking licence. These revocations were approved by the Central Bank of Ireland and the ECB on 18 January 2022. On 21 January 2022 the name of DEPFA ACS was changed to remove the word “bank”. DEPFA ACS remains a wholly owned subsidiary of DEPFA BANK plc.
On 16 December 2021 BAWAG P.S.K. was substituted in as issuer of DEPFA’s outstanding senior unsecured EMTN bonds. Also in December 2021 DEPFA published notices (for both DEPFA BANK plc and DEPFA ACS) of intent to effect cross border mergers with BAWAG P.S.K. pursuant to the European Communities (Cross-Border Mergers) Regulations 2008 and the Austrian EU-Merger Act and section 219 et seq. of the Austrian Stock Corporation Act. If the mergers are approved both DEPFA BANK plc and DEPFA ACS will be dissolved.
BAWAG Group AG (the parent of BAWAG P.S.K.) is a publicly listed holding company headquartered in Vienna, Austria, serving 2.3 million retail, small business, corporate and public sector customers across Austria, Germany, Switzerland, Netherlands and other developed markets. The Group operates under various brands and across multiple channels offering comprehensive savings, payment, lending, leasing, investment, building society, factoring and insurance products and services.