The National Property Fund and the PPF financial group yesterday signed a purchase agreement regarding the NPF’s 30% stake in Ceska pojistovna (the leading Czech insurance company). PPF will pay CZK 3,750 per share. Komercni banka owns a 10% stake in Ceska pojistovna and is expected to sell its stake to PPF by year-end; the selling price should be the same. This price implies an expected 0.41 bil. profit from the sale for KB in Q4 (we estimated the stake’s book value to be CZK 0.87 bil.; the selling value equals CZK 1.28 bil.). Neutral.
Separately, MFDnes reports that Komercni banka will sell its 70% stake in Ceska zbrojovka to Eximat (final selling price has not been disclosed). The Czech central bank completed its investigation related to KB’s stake in Ceska zbrojovka a few week ago, concluding that the bank violated the banking law. Solving this problematic issue might be helpful for KB, but we do not expect any impact on the stock.
(Jan Hajek)