Komercijalna Banka sold for EUR 387 million

On February 26, 2020, Nova Ljubljanska Banka (NLB) concluded a sales agreement with the Serbian government stipulating the acquisition of 83.23% of ordinary shares of Komercijalna Banka a.d. Beograd at the price of EUR 387 million.

The transaction will be closed in Q4 2020 and is subject to mandatory regulatory approvals from, among others, the European Central Bank, Bank of Slovenia and the National Bank of Serbia, NLB says in a press release.

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“The 387 million will be payable in cash on completion. In accordance with Serbian bank privatization regulations, NLB is not required to launch a mandatory tender offer for minority shares in Komercijalna Banka (KB)”, NLB says.

They also explain that “the purchase price implies a valuation of EUR 465 million for 100% of KB’s ordinary share capital, representing a multiple of 0.77 x KB’s IFRS consolidated shareholders’ equity as at June 30, 2019, and a multiple of approximately 6x KB’s estimated earnings for 2019”.

The purchase price, as said, will be subject to a 2% annual interest rate between January 1, 2020, and closing, with NLB benefiting from KB’s earnings during that period under a “locked-box” mechanism.

Subject to National Bank of Serbia approval, declared but unpaid dividends and employee benefits for prior financial years will be paid before closing. KB’s existing shareholders will also receive a dividend equating to 50% of the 2019 net income up to a maximum of EUR 38 million before closing.

As NLB points out, as a result of this transaction, Serbia will become the largest foreign subsidiary of the NLB Group, contributing 24% of the enlarged assets.

“KB will add more than 770,000 active retail clients and the largest branch network in the country with 203 branches to NLB’s existing operations in Serbia. KB’s subsidiaries in Bosnia-Herzegovina and Montenegro will also complement NLB’s existing operations in those markets,” NLB says.

(Srbija Danas, eKapija, 27.02.2020)


This post is also available in: Italiano

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