According to Polish Press Agency Poland’s state treasury has launched accelerated book-building process (ABB) to sell 11.75% stake in PKO . The transaction should be completed today. According to Polish daily Rzeczpospolita State Treasury plans to sell 10.25% stake that it holds indirectly through Bank Gospodarstwa Krajowego (BGK) and 1.5% stake directly held by State Treasury.
The initial reaction to the new is likely to be negative, though we do not expect more than 5% decline. We view this as a buying opportunity as the transaction will further improve PKO BP’s free float, which should have a positive trading impact. According to the privatization plan for the years 2012-2013, the state treasury plans to lower its stake in PKO to a minimum 25%. At present the state treasury holds total a 43.64% stake in PKO (including a 33.39% direct holding and 10.25% through BGK Bank). According to the privatization plan for the years 2012-2013, the state treasury plans to lower its stake in PKO to a minimum 25%. If the transaction proves to be successful, this implies that potential share overhang would be limited to some 7.15%. Thus a potential weigh on sentiment towards PKO BP’s stock should be lighter. In July 2012 during the last process state treasury placed more than 7% stake at PLN 32.5 and has agreed to a 180-day lock-up period.