PZU SA and Polish development fund PFR finalized their purchase of a 32.8% stake in Bank Pekao SA from UniCredit SpA for about 10.59 billion Polish zlotys, or 123 zlotys per share, the state-controlled insurer said June 7.
Under the purchase agreement signed in December 2016, PZU will own 52,494,007 shares of Pekao, representing a stake of about 20% in the lender, while PFR will control 33,596,165 shares, equivalent to roughly 12.8% in Pekao. PZU and PFR paid 6.5 billion zlotys and 4.1 billion zlotys for their stakes, respectively.
Thanks to the transaction, the share of Polish capital in the domestic banking sector increased to over 50%, with PZU becoming the largest financial group in Central and Eastern Europe, the insurer noted.
PZU CFO Tomasz Kulik said the acquisition will boost the consolidated per-share earnings of the group, while its ROE is set to increase by between 1 percentage point and 2 percentage points as a result of the purchase. The bank will also become a long-term, stable source of dividend revenue for PZU Group, with a payment worth over 450 million zlotys expected from Pekao in 2017.
UniCredit said the same day that the sale will add 70 basis points to the group's fully loaded common equity Tier 1 ratio, which stood at 11.45% at the end of March.
As of June 6, US$1 was equivalent to 3.72 Polish zlotys.