Komerční banka's Board of Directors has welcomed the Cabinet's decision today, which will bring the period of the privatisation process to an end. Komerční banka is satisfied that it was able to contribute to a transparent and smooth privatisation process by carrying out all its tasks in a timely and proper manner. The Bank's management is convinced that the Cabinet's decision to provide a three-year guarantee for a portion of problematic assets has also contributed to the success of the privatisation. Through these guarantees the Government set clear conditions for all potential investors. The Bank's Board of Directors expresses its thanks to all those who were involved in the preparations for privatisation and whose high-quality work helped to make the process of the Bank's denationalisation an unquestionable and transparent one. The Bank's management is confident that Komerční banka is well prepared for the process proper of integrating with the strategic investor.
An Integration Team is currently being created within Komerční banka. A number of preparatory steps were planned well in advance for the Bank and its employees to be fully prepared for the merger. Integration will obviously run across all of the Bank's activities and subsidiaries. Working procedures will be reviewed and then harmonised with those of the new owner. Although the preparations for making the Integration Team fully operational have been started, the team will go into full swing once the new owner actually enters the Bank, i.e. after signing the relevant agreements. All information available on the fusion of financial institutions, both in and outside the Czech Republic, is now being analysed as part of this preparatory work. In the coming weeks, the Integration Team will also take over Data Room operation. Data Rooms need to stay open in a 'stand-by' mode should the investor request additional information. The Integration Team, in which employees of both the Bank and the new owner will join hands, will steer the merger process itself. Creating a team like this is a standard approach, and it is quite essential for integrating the two companies.
Komerční banka enters the integration process with positive results: under the International Accounting Standards the Bank reported a profit after tax of CZK 1.3 billion as at 31 March 2001.
| Key indicators (IAS) |
31 Dec
1996 |
31 Dec
1997 |
31 Dec
1998 |
Profit/loss after tax
(CZK m) |
5 299 |
528 |
-9 546 |
Total assets
(CZK m) |
445 954 |
466 517 |
422 084 |
| Loans to clients (CZK m) |
256 166 |
249 989 |
214 018 |
| Debt to clients (CZK m) |
280 457 |
296 882 |
273 698 |
| Share capital (CZK m) |
9 502 |
9 502 |
9 502 |
| Capital adequacy under BIS (%) |
10,7 |
8,7 |
9,6 |
| Key indicators (IAS) |
31 Dec
1999 |
31 Dec
2000 |
31 Mar
2001 |
Profit/loss after tax
(CZK m) |
-9 782 |
-19 |
1 312 |
Total assets
(CZK m) |
390 122 |
402 205 |
401 670 |
| Loans to clients (CZK m) |
181 754 |
126 943 |
128 588 |
| Debt to clients (CZK m) |
259 191 |
287 624 |
282 761 |
| Share capital (CZK m) |
16 604 |
19 005 |
19 005 |
| Capital adequacy under BIS (%) |
10,3 |
14,7 |
15,0 |
The Privatisation Process in Komerční bance, a. s.
19 November 1997
The Czech Government approved the sale of shares held by the State in Komerční banka, a. s. to a strategic partner
28 July 1999
The Czech Government decided to transfer bad and doubtful debts with a nominal value of CZK 23.1 billion to Konsolidační banka Praha, s. p. ú. Asset restructuring was chosen as an alternative to increasing the Bank's share capital, which had been blocked by legal actions filed by minority shareholders
10 August 1999
The Czech Government published an advertisement inviting potential investors to express their preliminary interest in acquiring the State's equity stake in Komerční banka
24 November 1999
The agreement signed between the Czech Republic and the Slovak Republic on the allocation of federal assets settled the claim that had been raised by the National Property Fund of the Slovak Republic for a part of Komerční banka shares held by the National Property Fund of the Czech Republic. The National Property Fund of the Slovak Republic would thereafter be unable to question the ownership title to the shares then held by the National Property Fund of the Czech Republic.
14 January 2000
Successful completion of the process of share capital increase, which had been approved by the General Meeting in May 1999, to CZK 9.5 billion. The interest held by the National Property Fund of the Czech Republic in Komerční banka rose to 60% upon completion.
16 February 2000
The Czech Government decided on a profound restructuring of Komerční banka's assets. Based on this decision Komerční banka established and capitalised its Konpo, s. r. o. subsidiary, to which it assigned problematic assets worth CZK 60 billion in nominal terms after selling it to Konsolidační banka in March 2000.
20 September 2000
Goldman Sachs International, the Government's privatisation adviser for Komerční banka, distributed the Information Memorandum to potential investors, who were invited to submit their preliminary proposals based on the IM document.
27 November 2000
The Czech Government discussed the potential investors' preliminary proposals and short-listed four companies for participation in the subsequent stages of the privatisation process: HypoVereinsbank (Germany), UniCredito (Italy) and Société Générale and Crédit Agricole (France).
28 December 2000
The Czech Government decided to provide 20 billion Czech crowns' worth of guarantees to Komerční banka. For a period of three years, i.e. up to 31 December 2003, the Government shall be liable (through Konsolidační banka) for any loss that may be caused by a part of the problematic assets in Komerční banka's portfolio.
April 2001
End of the active phase of investors' due diligence.