Erste Bank said on Friday that it would purchase Ceska pojistovna’s (domestic No. 1 insurer) 3.1% stake in Ceska sporitelna (CS), Erste’s Czech subsidiary. Therefore, it would increase its equity stake in CS from 94.8% to 97.9% (and its voting rights from 96.1% to 99.4%). The price paid will be CZK 402,42 per share, a total of EUR 59.5 mil. The transaction is expected to be completed in the next couple of weeks.
Patria considers the price favorable to Erste Bank, our current fair-value estimate is near to CZK 500 per share, i.e., approx. 25% above the purchase price. Recall also that Erste (through AVS) offered minorities CZK 375 per CS share in a voluntary buyout a year ago. The per-share purchase price is thus a mere 7.3% above the buy-out price. Positive.
Jan Hájek