Bank merger on hold once more
By : Wioletta Buczek
Bank Pocztowy puts Raiffeisen Zentralbank on hold while it gets its house in order.
Bank Pocztowy reaffirmed its interest in Raiffeisen Zentralbank as a strategic investor last week by postponing the deadline for Raiffeisen to submit a bid for a stake in the bank for the third time since talks started in January.
Raiffeisen was granted exclusive rights to negotiations with Bank Pocztowy at the beginning of the year, but Pocztowy's failure to arrange a cooperation agreement with its dominant shareholder, Poczta Polska (Polish Post Office), is hampering progress in negotiations.
"Bank Pocztowy's board decided to prolong the deadline for our offer until June 15, since there are no specific agreements between Bank Pocztowy and its dominant shareholder, Poczta Polska," said Aleksandra Kwiatkowska, Raiffeisen Bank Polska's spokeswoman. "These settlements are essential for Raiffeisen as a bidder because they have a significant impact on Pocztowy's value and future competitive edge."
Kwiatkowska declined to specify the total number of shares Raiffeisen intends to purchase. "It is too early to talk about the percentage of stakes and transaction value, as important issues still have to be settled between Poczta Polska and Bank Pocztowy," she said. Kwiatkowska added that Bank Pocztowy's value would be boosted significantly if it strikes a deal, enabling it to access clients via Poczta Polska's branches.
While the total number of Bank Pocztowy's branches is fewer than 90, Poczta Polska operates through a network of 7,800 offices across Poland. Before any future sale, Bank Pocztowy's shareholders intend to increase the bank's capital from its current level of zl. 63 million ($15.8 million). The capital increase is due to be discussed at the bank's supervisory board meeting, slated for May 22.
Bank Pocztowy was set up in 1990. Its majority shareholders are Poczta Polska with a 66.6% controlling stake and Prokom Investment with a 33% stake. Last year, the bank posted a net profit of zl. 7.4 million ($1.68 million).
