KB announced on Friday that it had sold its 10% stake in the Ceska pojistovna insurer and its 69% stake in the Ceska zbrojovka manufacturer, for CZK 1,280 mil. and CZK 226 mil., respectively. By comparing the sale value of the stakes with their market value in KB’s books at the end of the third quarter, we estimate that KB recorded a profit on the Ceska pojistovna sale of CZK 12 per KB share (this has been known for some time), and took a loss on the Ceska zbrojovka sale of less than CZK 1 per KB share (the exact size of the loss was new information on Friday). Given the relatively small impact of the loss, we consider the news neutral for KB stock.
(Ondrej Datka)