Komercijalna Banka sold for EUR 387 million – NLB to become the third largest bank in Serbia through

Thursday, 27. Feb 2020.

On February 26, 2020, Nova Ljubljanska banka (NLB) entered into a share purchase agreement with the Republic of Serbia for the acquisition of an 83.23% ordinary shareholding in Komercijalna Banka a.d. Beograd at the price of EUR 387 million.

The closing of the transaction is expected 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.

– The consideration for the 83.23% shareholding amounts to EUR 387 million, which 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 minorities shareholdings in KB  NLB emphasizes.

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 KBs IFRS consolidated shareholders equity as at June 30, 2019, and a multiple of approximately 6x KBs 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 KBs 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. KBs existing shareholders will also receive a dividend equating to 50% of 2019 net income up to a maximum of EUR 38 million before closing.

As NLB points out, through the 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 NLBs existing operations in Serbia. KBs subsidiaries in Bosnia-Herzegovina and Montenegro will also complement NLBs existing operations in those markets.

Blaž Brodnjak, CEO of NLB, stated that, as a result of the transaction, NLBs market share in Serbia will increase to over 12.1% by total assets, making NLB the third largest banking group in the country.

The Minister of Finance of the Government of the Republic of Serbia, Siniša Mali, stated that Serbia is satisfied with the price achieved.

– The state is planning to invest the funds wisely, especially in the “Serbia 2025” investment plan, which will improve the quality of life of our citizens and further GDP growth. The performance of Komercijalna banka is excellent, but it can get even better, and m convinced that this can be achieved with the help of the new strategic partner. We believe that in the case of financial services in the open market a private owner can be a better owner that the state. NLB is a serious bank with a clear strategy and vision, and at the same time it is the only regional financial institution with listed GDRs on the London Stock Exchange. We hope that the transaction will be closed in the next few months – Mali said.

Source: eKapija

05. Apr 2020.
CARIC: Banks Better Prepared for Crisis Than in 2008

03. Apr 2020.
Banks Not Exempt from Measures of Aid to the Economy, Considered Large Companies

30. Mar 2020.
EU Approves EUR 15 Million for Serbia from Current Arrangements

30. Mar 2020.
Set of Support Measures for Economy and Citizens Worth EUR 5 Billion

23. Mar 2020.
Representatives of 12 Bilateral Chambers of Commerce in Serbia Propose Additional Measures of Suppor

13. Mar 2020.
Teva looking for new owner for Zdravlje factory in Leskovac

12. Mar 2020.
Belgrade Stock Exchange: We are protected from dramatic breakdowns of the capital market

25. Feb 2020.
Komercijalna Banka sold to NLB for EUR 450 million?

18. Feb 2020.
Knauf Insulation celebrates 15th anniversary in Serbia

17. Feb 2020.
Serbia considering issuing yuan-denominated securities

24. Jan 2020.
Japanese Bank for International Cooperation considering opening investment fund in Serbia

16. Jan 2020.
EBRD invests EUR 516 million in Serbia in 2019

13. Jan 2020.
Chinese Zijin to invest USD 800 million in Serbia – Expansion of Zijin Bor Copper and development of

06. Jan 2020.
Proposal made for JUBMES to be renamed as ALTA Banka

30. Dec 2019.
BRNABIC: State to start reforming EPS and Srbijagas

24. Dec 2019.
EIB and Credit Agricole secure EUR 30 million in loans to SMEs in Serbia

23. Dec 2019.
Tender for Lasta to open in April 2020 – Another 84 state companies with 30,000 employees waiting fo

17. Dec 2019.
Three offers sent for Komercijalna Banka

10. Dec 2019.
Leoni building factory in Kraljevo – Jobs for 5,000 workers by the end of 2023

06. Dec 2019.
Farmakom M.B. concern with four lead, antimony and zinc mines up for sale

04. Dec 2019.
Investment funds from Silicon Valley considering investments in Serbia

03. Dec 2019.
Petrohemija to invest EUR 15.4 million in processing capacity increase

02. Dec 2019.
Arrival of Chinese company Quectel an opportunity for development of 5G IoT apps in Serbia – Jobs fo

01. Dec 2019.
New sale of thread and yarn manufacturer Dunav from Grocka – Initial price for a quarter of the capi

30. Nov 2019.
British company Aptiv to build factory in Zajecar on 40,000 m2 – Investment worth EUR 20 million, jo

29. Nov 2019.
Serbian Blockchain Summit on December 7 in Belgrade

29. Nov 2019.
JAT Tehnika sold to Czech company Avia Prime

26. Nov 2019.
State buys 34% of shares of Komercijalna Banka

23. Nov 2019.
China cracks down on bitcoin