Launched in the Czech Republic in 1996, Société Générale Equipment Finance CR is a 100% subsidiary of Société Générale Group. It is a leading provider of equipment finance and vendor solutions in the Czech Republic and Slovakia where it holds respectively a 19% and 6% market share. SGEF CR ranks #4 on the global Czech leasing market.
As of 31 December 2010 and based on IFRS , total assets of SGEF CR amounted to CZK 21.1 billion and its equity stood at CZK 2.8 billion. The company reported a net profit of CZK 316 million for 2010.
After the deal was completed yesterday, the seller, Société Générale Equipment Finance International GmbH, based in Wuppertal, Germany, retains 49.9% share in SGEF CR and will continue to support SGEF CR with its expertise in the area of asset-backed financing and vendor solutions.
Komerční banka will begin consolidating result of SGEF CR from May 2011. The acquisition will be accretive to KB’s earnings per share from the time SGEF CR joins KB Group. The acquisition of 50.1% stake in SGEF CR will decrease by 56 basis points KB Group’s total capital adequacy and by 49 basis points its Tier 1 ratio, which stood at 15.3% and 14.0%, respectively, as of 31 December 2010.