Belgian multi-channel bank KBC Group NV (KBCSF.PK, KBCSY.PK) Friday announced that it has agreed with Republic of Slovenia to sell its remaining 22 percent stake in the Slovenian NLB Bank to the Slovenian Government for a total consideration of about 2.76 million euros, which represents 1 euro per share.
As a result, KBC will fully exit NLB and comply with its strategic plan, which it had agreed with the European Commission in November 2009. According to the plan, KBC had agreed to earmark for divestment, its non-strategic stake in NLB. Completion of the agreement is expected early 2013, subject to approval of the Slovenian Competition Authority.
NLB is a leading bank in Slovenia and also holds strong retail franchises in Macedonia and Kosovo.
KBC held 22 percent in NLB, while the rest of the shares are held directly or indirectly by the Republic of Slovenia and several smaller shareholders. As NLB is an important systemic bank in Slovenia, the government decided to accept the proposal to purchase the NLB shares from KBC.
The transaction is expected to result in a negative impact on KBC's earnings of -0.1 billion euros reflected in the fourth quarter of 2012. The impact on KBC's capital is negligible.
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KBC's representatives on the Supervisory Board of NLB, John Hollows and Riet Docx, and KBC's representative on the Management Board of NLB, Guy Snoeks have resigned from their positions at NLB, effective December, 31, 2012, KBC added.
On Monday, KBC announced the sale of its Russian banking subsidiary Absolut Bank to a group of Russian companies representing the pension reserves of the Russian non-state pension fund Blagosostoyanie. Total consideration for the deal was 0.3 billion euros plus repayment of all KBC funding that is currently placed within Absolut Bank and which amounts to 0.7 billion euros. The sale will free up around 0.3 billion euros of capital for KBC.
Further, KBC stated that it is in open and constructive dialogue with the European Commission regarding its remaining divestment files. The files include Antwerp Diamond Bank in Belgium, KBC Banka in Serbia and KBC Bank Deutschland of Germany.
KBC said it is still in discussions with a number of interested parties, while Kredyt Bank (Poland) is in a merger process with BZ WBK which is ongoing.
KBC had received state aid from the Belgian Federal government and the Flemish government during the financial crisis and has ever since improved its capital base, both organically and through asset divestments.
In Brussels, KBC shares are currently trading at 25.73 euros, down 1.93 percent.
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