Komercni banka will buy Societe Generale’s Czech branch for CZK 1,03 bil. The takeover has been planned ever since the sale of KB to Societe Generale. Based on the branch’s net income (CZK 163 mil. for 1-6/2001), we find the price appropriate, perhaps even advantageous for KB. The branch had total assets of CZK 21.2 bil. in June 2001, i.e. an equivalent of 5% of KB’s total assets. The acquisition’s impact on KB’s P&L will be small. Neutral. Source: CTK.
(Ondrej Datka)