Brandes Investment Partners Backs NLB's Superior Offer for Addiko Shares

In a significant move for the investment community, Brandes Investment Partners has publicly declared its support for NLB Group's offer for Addiko Bank AG on July 16, 2026. This endorsement comes as Brandes intends to tender the shares it manages, emphasizing their commitment to achieving the highest value for their clients.

Brandes has been a shareholder in Addiko Bank since its initial public offering in 2019 and has been closely monitoring the bank's growth and the ongoing offers for its shares. With NLB making a compelling bid of €37.00 per share, Brandes believes this option presents a far more advantageous outcome compared to the offer from Raiffeisen Bank International (RBI), which stands at €26.50 per share. The total equity valuation from NLB's proposal is estimated at around €721.5 million, which is significantly higher than RBI’s approximately €516.8 million offer, marking a substantial difference of about €204.8 million.

The investment firm asserts that NLB's substantial 39.6% premium makes a convincing case for shareholders, especially when weighed against the risks involved. Despite NLB's proposal being subject to regulatory approvals, Brandes has expressed confidence that the premium will provide adequate compensation for shareholders who may face execution risks.

One of the key developments that may enhance the chances for NLB's bid to succeed is their decision to lower the minimum acceptance threshold from 75% to 50%. According to Brandes, this strategic shift opens a more accessible route for shareholders looking to maximize the value of their investments. Although RBI has already reported acceptances of 55.3%, surpassing their threshold, Brandes has highlighted that shareholders who opted for the RBI offer will have the option to withdraw their acceptance upon the publication of NLB's improved proposal.

Furthermore, Brandes has raised concerns about the complexity of the rival RBI proposal, which involves a carve-out arrangement with Alta Group concerning four non-EU bank subsidiaries. According to public data, Alta Group might retain an effective economic interest in about 29.6% of Addiko Bank through various ownership and purchase agreements. This raises questions about the validity and appeal of RBI's offer, especially as the Austrian Takeover Commission appears to only exclude directly held shares by Alta Group from relevant offer share calculations. This nuance suggests that RBI could potentially finalize their offer without gaining majority acceptance from shareholders not connected to them or Alta Group.

Brandes Investment Partners remains vigilant in monitoring the ongoing developments in this high-stakes offer and will ultimately act in the best interests of their clients. As a distinguished investment advisory firm founded in 1974, Brandes employs a value investing strategy and manages a vast array of equity and fixed-income assets globally.

The firm, known for its consistent application of a disciplined value investment philosophy pioneered by Benjamin Graham, aims to help its clients navigate the complexities of the current investment landscape. With headquarters in San Diego and additional offices in Milwaukee, Toronto, Dublin, and Singapore, Brandes continues to uphold its commitment to delivering informed investment choices regardless of market conditions. As interest in Addiko Bank shares continues to unfold, shareholders are advised to stay tuned for further developments in this evolving scenario.