2013-04-26 10:05:04 -
Press Release - during trading hours
Brussels, 26 April 2013
KBC has reached an agreement with Société Générale Srbija and Telenor Serbia on
the acquisition of KBC Banka, KBC's banking entity in Serbia. Under the
agreement, Telenor will purchase 100% of KBC Banka's shares, while Société
Générale Srbija will acquire KBC Banka's key assets and deposits. All the
parties involved agreed not to disclose any financial details of the
transaction. For KBC, however, the transaction will have an impact on earnings
of an estimated -47 million euros
(-17m euros of which
recorded in 1Q 2013), largely offset by another capital
release of an estimated 42 million euros, resulting in a negligible total
capital release. The agreement marks KBC's exit from the Serbian banking market.
* KBC Banka is a universal bank providing a full range of products and
services to retail, SME and large corporate customers in Serbia. The bank's
headquarters are located in Beograd. Customers are served through a
nationwide distribution network of 58 branches, located in the most
economically active areas of the country. KBC Banka holds market shares of
between 0.9% and 2.9%, serves approximately 81 000 retail and SME customers,
and employs 492 people.
* Société Générale Srbija is a leading bank in Serbia and is part of the
Société Génerale Group. The Group has been present in Serbia for over 35
years, with a network of 102 branches offering a broad range of financial
products services and employing over 1 300 staff.
* Telenor Group is the sixth largest mobile operator in the world with 148
million subscribers in 11 markets, including 3.2 million in Serbia. Last
year, the Group identified mobile financial services as one of its key
strategic directions and market opportunities.
* Pending regulatory approval, the transaction is expected to be finalised in
the fourth quarter of 2013.
* For KBC, however, the transaction will have an impact on earnings of an
estimated -47 million euros (-17m euros of which recorded in 1Q 2013),
largely offset by another capital release of an estimated 42 million euros,
resulting in a negligible total capital release.
Strategic rationale behind the agreement
KBC's decision to sell KBC Banka was part of the Group's strategic refocus that
was agreed with the European Commission in November 2009. Since then, KBC has
been refocusing on retail customers, small and medium-sized enterprises and mid-
caps in its core markets of Belgium and Central and Eastern Europe, while
reducing risk-weighted assets. The divestment of KBC Banka fits in with this
The acquisition of KBC Banka's key portfolio illustrates the strategic ambitions
of Société Générale Srbija to further expand its businesses, to offer new
products and services to customers in Serbia and to support the country's
For Telenor the acquisition of KBC Banka is a crucial step in the process of
bringing advanced mobile financial services to customers in Serbia. This
investment will contribute to support economic growth in Serbia.
KBC Banka customers and other relevant stakeholders will soon receive further
details of the transaction and the necessary assistance to transfer their
assets. During a transition period of a few months, KBC Banka - with the backing
of KBC - will continue to provide a full range of services to its customers and
serve their financial needs. KBC Banka customers will be able to use all their
usual products and enjoy the same level of professional service as before. All
parties included in the transaction have committed to mitigate the effects of
KBC's withdrawal from the Serbian market. KBC will ensure that during the
transition process, the necessary staff levels are maintained to provide service
and support to KBC Banka's customers. Respecting social dialogue, KBC will
establish a redundancy plan for any employees directly impacted.
Johan Thijs, CEO of KBC Group NV commented on the deal as follows: 'I am pleased
to announce another step in implementing KBC's updated and refocused strategy
that was agreed with the European Commission in 2009 and is now almost fully
realised. The divestment of KBC Banka further strengthens our focus on our core
bancassurance markets while reducing our risk profile. Today's announcement
marks KBC's exit from the Serbian market and the end of period of uncertainty
for KBC Banka. I would like to thank KBC Banka's management and staff for their
commitment and efforts over the past years and wish them every success in the
Note for the editors:
About Telenor Group (www.telenor.rs)
Telenor Group is the sixth largest mobile operator in the world with 148 million
subscribers in 11 markets, including 3.2 million in Serbia. Telenor offers
services that ensure that subscribers are connected easily and reliably with
people and information. Last year, the Telenor Group identified Financial
Services as one of its key strategic directions and market opportunities,
setting a target of 1 billion USD in global revenue for 2016. Telenor has
valuable existing financial service positions in many markets and is flexible
about the best way to offer mobile financial services in each of the 11 markets
in which it operates.
About Société Générale Srbija (www.societegenerale.rs)
Société Générale Srbija is part of Société Générale Group, based in 76
countries, employing 154 000 people and serving 32 million customers throughout
the world. Société Générale has been present in Serbia for over 35 years. It has
a network of 102 branches and employs over 1 300 staff.
In addition to banking services and products for individuals and legal entities,
Sociéte Générale Srbija offers leasing services (SOGELEASE), consumer loans
through point of sales, memberships to a voluntary pension fund (SOGE Penzije)
and insurance (SOGE Osiguranje).
About KBC Banka (www.kbcbanka.rs)
KBC Banka (formerly Alco Banka a.d. Beograd) was established as a joint stock
company in 1996. In 2007, KBC became a 100% owner of the company. KBC Banka is a
universal bank, providing a full range of products and services to retail, SME
and large corporate customers through its network of 58 branches. The bank
serves approximately 81 000 retail and SME customers, and employs 492 people. In
2012, KBC Banka was ranked 22nd in the Serbian banking sector.
About KBC (www.kbc.com)
KBC is an integrated multi-channel bancassurance group, catering mainly for
retail, SME and local mid-cap customers. At the end of 2009, KBC refocused its
strategy and now concentrates on its core activity in its home markets of
Belgium and certain countries in Central and Eastern Europe (Czech Republic,
Slovakia, Bulgaria and Hungary). Elsewhere around the globe, the group has
established a presence in selected countries and regions. Under that refocused
strategy, and at the request of the European Commission, KBC decided to divest a
number of businesses in non-EU markets and with limited market shares, such as
the activities of KBC Banka (Serbia).
KBC's headquarters are located in Brussels (Belgium). The group employs more
than 37 000 FTE, has 9 million customers and is listed on NYSE Euronext Brussels
(ticker symbol 'KBC').
Follow KBC at www.twitter.com/kbc_group
KBC was advised on this transaction by Alba Partners and KBC Securities.
For further information, please contact:
Wim Allegaert, General Manager, Investor Relations, KBC Group NV
Tel.: +32 2 429 50 51 E-mail: email@example.com
Viviane Huybrecht, General Manager, Corporate Communications/Spokesperson, KBC
Tel. : +32 2 429 85 45 E-mail: firstname.lastname@example.org
Marija Vujanic, Communication Manager
Tel.: +381 63 670 520 E-mail: email@example.com
Goran Stupar, Media Specialist
Tel.: +381 63 230 095 E-mail: firstname.lastname@example.org
Société Générale Srbija
Aleksandra Nenadovic, Communication Department Manager
Tel.: +381 63 65 75 67 E-mail: email@example.com
Ana Markovic, PR Expert
Tel.: +381 63 104 88 27 E-mail: firstname.lastname@example.org
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Source: KBC Groep via Thomson Reuters ONE