* AVS (holds a 41% stake in Erste Bank, which has a 52% stake in Ceska sporitelna) announced that it intends to make a tender offer for Ceska sporitelna common stock at CZK 375 per share.
* AVS also said it “would likely support a de-listing of Ceska sporitelna from the Prague Stock Exchange.” Its decision will mainly depend on the outcome of the tender offer.
* CS posted a net consolidated IAS profit of CZK 1.80 bil. in 2001, which was above market expectations (expected range was CZK 1.5 bil.–1.75 bil.).
* The bank will propose a CZK 3 per-share dividend from its 2001 profit (an AGM is expected in mid-May 2002).
* In June, the bank will exercise a one-off put option of selling all of its guaranteed non-performing assets to the state-owned Ceska konsolidacni agentura (currently, CZK 10.4 bil. of net assets are guaranteed).
* CS updated 2002 targets: ROE of 18%, C/I ratio below 65%, and a dividend pay-out ratio of about 30%. As of Friday, March 22, Patria’s investment opinion on Ceska sporitelna is restricted. Patria Finance has been authorized by AVS to arrange for the implementation of the above-mentioned tender offer.
(Jan Hajek)