22.12.2004
Bank Millennium sold 10% shareholding in PZU S.A.
Bank Millennium S.A. informs that, together with its subsidiary BIG BG Inwestycje S.A., signed an agreement with Eureko B.V. concerning selling a 10% shareholding in PZU. The agreement is conditional on Eureko obtaining the approval from the Polish Office of Competition and Consumer Protection.
The minimum guaranteed price for the sale of the shareholding under the agreement is PLN 1.6 billion, to be paid in two tranches. Additionally, considering the intention of PZU S.A. shareholders to float and list PZU S.A. in the Warsaw Stock Exchange during 2005, the sale price may be increased depending on the performance of PZU S.A. stock price after listing.
The gross consolidated capital gain to be recognized in the accounts of the current year amounts to PLN 382 million.
Additionally, Bank Millennium S.A. informs that, as part of the preparation for adoption of new IFRS Accounting Standards and in accordance with Polish Accounting Act, has performed a detailed review of the tangible and intangible assets in order to reassess their economic useful life and the fair value of own real estates that are under selling processes.
Based on the preliminary conclusions of this analysis, Bank Millennium S.A. considers adjusting the periods of depreciation of some of its assets and, consequently, charging in 2004 a non-recurrent amortization of PLN 221 million, which will correspond to equivalent savings in forthcoming years.
The accounting net pre-tax impact of the above mentioned items in Bank Millennium S.A. consolidated accounts will amount to PLN 161 million.
Eureko B.V., that currently holds 20% of votes at the General Shareholders Meeting of the Bank, informed that, in line with its declared intention to reduce its banking exposure, it will reduce its current shareholding in Bank Millennium from 20% to 1.2%. The shares are to be sold at market price to a number of investors.