Komercni banka announced it sold its 100% stake in its asset management subsidiary to Societe Generale Asset Management. IKS has about CZK 28bn of assets under management with a market share of about 14% and ranks among the largest players on the Czech asset management market. The transaction was settled at an agreed price of CZK 265m. The price was supported by an independent evaluation of IKS performed by an international advisory firm. The sale price represents a P/BV of 1.8, which is slightly below our expectations. In April 2005 IKS also distributed CZK 96m to KB in retained profit (compared to CZK 187m in 2004). As the net value of IKS in KB’s books stands at CZK 75m, the pre-tax net profit from the sale is CZK 190m (or CZK 5 / share) plus CZK 96m in dividends. The deal also has to be evaluated in light of the exclusivity distribution agreement between KB and SGAM on the sale of funds and asset management products, which includes fee sharing. The sale should be booked in 2Q 2005. The news was generally expected.