08 September 2006
Komercni banka, a.s. http://www.kb.cz/en
Prague 1, Na Prikope 33, building identification number 969, Post Code 114 07
Identification No.: 45 31 70 54
incorporated in the Commercial Register maintained with the Municipal Court in
section B, insert 1360
Pursuant to Act 256/2004 (Czech) Coll. subsections 120(1)(e) and 120(4) and
Rules of Prague Stock Exchange part III annex Harmonogram subsection E(d)
Komercni banka, a.s. discloses following announcement:
Komercni banka purchases remaining shares of Modra Pyramida stavebni sporitelna
(building society) from BHW and Ceska pojistovna to become a 100% shareholder of
Prague, 8 September 2006 - Following prior agreement and negotiations announced
in July 2006, Komercni banka, a.s. (KB) entered into shares purchase agreements
with BHW Holding AG (BHW) and Ceska pojistovna, a.s. (CP) concerning shares of
Modra Pyramida stavebni sporitelna, a.s. (MPSS) on 7 September 2006.
Komercni banka (currently 40% shareholder of MPSS) will acquire 50% of MPSS's
shares from BHW and 10% from CP for the same price. The acquisition price for
the cumulative 60% stake in MPSS amounts to EUR 144 million (equivalent approx.
of CZK 4,100 million).
As a result, KB will establish 100% control over MPSS following strategic
decisions of BHW and CP to withdraw from MPSS which was jointly established by
these three institutions in the early 1990s.
The transaction is subject to approval by the Czech Antimonopoly Office and the
Czech National Bank and to other legal conditions. Completion of the transaction
is expected by the end of the year.
The acquisition of MPSS is a strategic step for KB in terms of expansion on its
home market. KB and MPSS will benefit from significant cross-selling potential
and synergies stemming mainly from almost 1,000,000 MPSS customers and from its
well trained and exclusive MPSS's network of financial agents.
BHW is the German market leader in private home finance providing services to
more than 2.7 million clients in Germany. Since January 2006, it is part of
Postbank Group, which, with overall more than 14.5 million clients, is the
leading retail services provider in the German banking market.
Ceska pojistovna is the largest insurance provider on the Czech market.
Approximately 5,200 employees and 6,000 sales representatives in 70 agencies and
700 agency outlets provides its individual clients with life and non-life
insurance as well as corporate clients with insurance of industrial and
entrepreneurial risks. Ceska pojistovna is a part of the PPF financial group.
MPSS is a building society offering specialized products in the area of building
savings and loans to nearly 1 million clients. The distribution of MPSS product
is ensured by a mobile network of 1,800 professional and well-trained agents,
which offer MPSS products through 160 own points of sale and over 240 external
agencies all over the Czech Republic. MPSS has 365 employees.
Key data of MPSS, in EUR million:
31 December 2005 30 June 2006
Total assets 2,023 2,124
Total equity 56 65
Client deposits 1,920 1,934
Loan book 674 758
Net profit for the period 9 7
This information is provided by RNS
The company news service from the London Stock Exchange