Polish Firms to Buy Controlling Stake in Pekao from UniCredit for $2.57 Billion
08 December 2016 - 7:14PM
Dow Jones News
By Martin M. Sobczyk
WARSAW--Poland's largest insurance company PZU SA (PZU.WA) and a
Polish government vehicle have agreed to buy a combined 32.8% stake
in the country's second-largest bank by assets from Italy's
UniCredit SpA (UCG.MI), PZU said on Thursday.
PZU will buy 20% of Bank Pekao SA (PEO.WA) while the fund PFR
will buy 12.8% for 123 zlotys a share, bringing the total price for
the controlling stake to 10.59 billion zlotys ($2.57 billion).
Pekao on Wednesday closed at PLN120.50 a share.
PZU is controlled by the Polish government, its single-largest
shareholder. PFR is a government entity created to help large
Polish companies expand.
The transaction will reduce foreign ownership in the Polish
banking sector. About 60% of it is now in the hands of foreign
banks, mostly from the eurozone.
The sale will help the Italian lender shore up its finances as
it prepares a new strategic plan to be announced in December.
UniCredit said Thursday that it will sell its remaining 7.3% in
Pekao on the stock market. The sale will boost UniCredit's Cer1
ratio by 55 basis points, it said.
-Write to Martin M. Sobczyk at martin.sobczyk@wsj.com
(END) Dow Jones Newswires
December 08, 2016 02:59 ET (07:59 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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