PZU insurer, Pekao lender to reveal terms and conditions of shares swap in Q1-Q2 2025

"We assume that the entire transaction would have a chance to materialise at the turn of the first and second half of next year," Stypulkowski told the conference.

"In this scenario, more events must take place on the part of PZU. Pekao could enter into the transaction itself at the moment when it proposes an exchange ratio. I estimate that this will be around the first quarter of next year (...) I expect it to be the end of the first quarter, maybe the beginning of the second quarter of next year," he added.

The CEO said that one of the elements of the planned transaction is a draft law announced by the Ministry of Finance aimed at entering the bank into the list of companies with a ban on the sale of State Treasury shares.

At the beginning of June, PZU SA and Bank Pekao signed a cooperation agreement, which is ultimately intended to lead to the reorganisation and increased efficiency of the capital group. It was reported that the potential transaction would result in the release of surplus capital of up to PLN 20 billion (EUR 4.7 bln).

The new group will be headed by a bank, not an insurer. To achieve this, PZU SA will first need to be split up by separating a holding company and a wholly-owned subsidiary conducting operations in the field of property and other personal insurance. Next, the holding company PZU SA will be merged with Bank Pekao SA as the acquiring entity. Ultimately, only one company will be listed on the Warsaw Stock Exchange.

The shareholders of PZU SA (the holding company) will receive Pekao shares currently held by PZU, as well as newly issued Pekao shares.

After the entire transaction, the State Treasury's share in the new entity is expected to amount to approximately 27 percent.

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