According to an official statement, ING-BSK has received a 15.99% stake in PKM Duda in a debt-to-equity swap transaction. ING-BSK has declared it held no previous stake in PKM Duda and is not planning to increase its current stake in the next 12 months.
We believe the market had expected this transaction, as the conversion of debt into shares relates to the negative valuation of PKM Duda’s FX options and is part of an agreement signed in July 2009. We believe the market should expect to see similar deals in the sector, as there are many examples of Polish banks reaching such agreements with their debtors. We view this news as slightly positive for ING-BSK.