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Bank Pekao SAPZU insurer's reorganisation needs amendments to four acts, dividend policy to remain unchanged
The creation of a holding structure at listed insurance group PZU will require amendments to four acts, but no changes to the dividend policy are planned following the merger of PZU and Bank Pekao, according to Andrzej Klesyk, chairman of the PZU management board.
"There will be no change in the dividend policy, and we hope, with near certainty, that we will pay dividends similar to those paid so far. Both PZU's and Pekao's dividend policies are such that they pay out more than 50 percent," Klesyk said during Wednesday's PZU general meeting.
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 announced that the potential transaction would result in the release of surplus capital of up to PLN 20 billion (EUR 4.68 bln).
The new group will be headed by a bank, not an insurer. To achieve this, it will first be necessary to split PZU SA by separating a holding company and a wholly-owned subsidiary conducting operations in the field of property and other personal insurance. Then, the holding company PZU SA will be merged with Bank Pekao SA as the acquiring entity.
"This is a step that will generate approximately PLN 15 to 20 billion in capital surplus (...) In order to carry out this transaction, four acts will have to be amended, as well as the statutes of both companies," said Klesyk.
Ultimately, only one company will be listed on the Warsaw Stock Exchange.
The entity created from the merger of the largest insurer and the second largest bank in Poland will have, among other things, approximately PLN 200 billion (EUR 46.8 bln) more lending potential compared to the current model of the group.
seb/ han/
