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Loan for purchase of shares or ownership interest in CZK or foreign currency
The loan is designed for:
- client who is an entrepreneur (legal entity or natural person) and who
- is authorised to carry out business in the Czech Republic and in fact he carries out business there
- has a tax duty in the Czech Republic
- can be a credit recipient according to relevant legislation
- municipalities, confederations of municipalities, regions, allowance organisations established by municipality or region, and legal entities established by municipality or region
The loan in foreign currency is intended primarily for clients with sufficient collections in a foreign currency on an account in Komerční banka.
Loan characteristics:
The loan is medium to long-term and is generally granted upon condition that the client covers 30 % of the purchase price
from its own funds. The funds must be deposited in advance on an account with Komerční banka.
Repayment of the loan should primarily be based on the client's current business outside the company whose shares or ownership
interest are to be purchased. The repayment of loans for share purchases cannot be documented by incorporating dividends
earnings. These are only considered a reserve.
The loan is drawn as a non-cash transfer for direct payment to the seller's account. If the client intends to purchase the
shares in the stock exchange the deal can only be made through Komerční banka as the broker. The loan is repaid in stages
on the dates agreed in the contract and from the client's funds.
A fixed or variable interest rate is used for this type of loan. The client pays the interest monthly or quarterly on the
dates agreed in the loan contract. The method of charging interest is also agreed in the contract. A loan to purchase
shares or an ownership interest is granted in Czech crowns or selected foreign currencies (EUR, USD, CHF).
The provision of this loan is restricted by the legal regulations issued by ČNB, according to which the bank must not provide loans or issue securing or other payment tools, e.g. guarantees, letters of credit for a loan to:
The prohibition of financial assistance is required (securing by the company whose ownership interest is purchased cannot be used) The target company cannot (even indirectly, i.e. through other subjects; this also applies to a company controlled by the target company):
- secure the loan provided for another subject for the purchase of an ownership interest / shares of the target company (either this involves providing a guarantee, a right of lien to assets or securing as an accession to the commitment),
- secure other commitments related to the acquisition of an ownership interest / shares,
- provide advances for the acquisition of an ownership interest / shares
- provide loans / credits for the acquisition of an ownership interest / shares.
Note 1)
- The bank;
- A legal entity with a qualified interest in the bank;
- A legal entity under the control of an entity with a qualified interest in the bank;
- A legal entity under the control of persons operating in consensus, having control over the bank;
- A legal entity which is among persons operating in consensus specified in point d);
- A legal entity under the control of a person from among the persons operating in consensus specified in point d) or;
- A legal entity under control of the Bank.
The loan - benefits
- Supports established and developing joint-stock companies
- Loan in more than one currency under a single loan contract
The loan enables you:
- to stabilise and extend your business
How to obtain a loan to purchase shares or an ownership interest?
Together with the loan application you should submit updated documents authorising the business operation, financial statements, or other documents assessing the risk or documenting the loan repayment capacity according to the security instrument used (for example for a pledge of real estate an extract from the Land Register not older than 5 days, the title deed, insurance policy, etc.).
If you want to know more about the product or to order it directly please contact your banking advisor or call KB freephone at 800 111 055.
