According to an official statement from Komercni Banka, the bank signed a EUR 120m contract concerning acquisition of up to 50% stake in building society Modra pyramida from German bank BHW. Modra pyramida is currently owned by KB (40%), BHW (50%) and Ceska pojistovna (10%). The exact level of share on MP capital acquired by KB depends on further discussion with the minority shareholder Ceska pojistovna, but under all circumstances shall be at least 80% of the registered capital of MP.
Our view:
The price of EUR 120m equals to a 2005A P/BV of 4.3x and in our opinion Modra pyramida is fully-priced at this level and we do not expect to ad value for shareholders. The news was up yesterday Komercni Banka was up 1.85% on the rising market.