Komercni banka (KB) decided on Friday to sell its 52.6% stake in MUZO (the largest domestic indirect payment processor) to Global Payments for USD 34.7m (CZK 904m). KB is thus continuing in its optimization of its financial group to comply with Societe Generale's business strategy (SG holds 60% in KB).
As KB purchased the stake for CZK 64m, it should realize an unconsolidated pre-tax profit of CZK 0.84bn (consolidated profit should be boosted by approx. CZK 0.6bn). The transaction will be reflected in Q1 2004 results. The purchase price implies a 2003E PE multiple of 15, which is rather fair to KB, we believe.