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CMS and Schoenherr Advise on CSOB Acquisition of CMSS from Bausparkasse Schwabisch Hall

CMS and Schoenherr Advise on CSOB Acquisition of CMSS from Bausparkasse Schwabisch Hall

Czech Republic
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CMS Prague has advised Ceskoslovenska obchodni banka, the Czech division of KBC Group, on the acquisition of 45% stake in the Czech building savings bank Ceskomoravska stavebni sporitelna from Bausparkasse Schwabisch Hall, advised by Schoenherr.

The total value is EUR 240 million, which represents a 1.54 multiple of the 2018 standalone net book value and a 9.20 implied multiple of 2018 net profit including discounted 2024 synergies.  Parties have agreed that dividends from 2018 and 2019 profits will fully belong to Ceskoslovenska obchodni banka (CSOB).

According to KCB press release, the transaction will have an impact of approximately 0.30 percentage points on the KBC Group’s CET1 ratio, which stood at 16%, at the end of 2018 and would lower KBC Group’s 2% M&A buffer to 1.70%. Furthermore, the revaluation of KBCs 55% stake in Ceskomoravska stavebni sporitelna (CMSS) will lead to a one-off gain for KBC on the date of the closing of the transaction, estimated at approximately EUR 80 million. 

As a result of this transaction, CSOB will hold 100% of CMSS and become the only shareholder of the company. The agreement is still subject to anti-trust approvals and is expected to close by summer 2019.

CSOB is a universal bank in the Czech Republic, established by the State in 1964 and privatized in 1999. Since 2007 the bank is a wholly-owned subsidiary of KBC Bank. CSOB provides its services to all groups of clients, as well as SME, corporate, and institutional clients. In retail banking in the Czech Republic, CSOB is operating under brands brands CSOB and Postovni sporitelna (Postal Savings Bank; financial centers and outlets of the Czech Post network). 

The CMS team was led by Partner Lukas Janicek and Counsel Patrik Przyhoda, supported by Partners Tomas Matejovsky and Libor Prokes, Associate Stepan Havranek, and Lawyers Lukas Reichmann and Jan Jezek. 

Schoenherr Partner Martin Kubanek led the team in Prague      

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PRK Partners, one of the leading Central European law firms, has been helping clients achieve their business objectives almost 30 years. Our team of lawyers, based in our Prague, Ostrava, and Bratislava offices, has a unique knowledge of Czech and Slovak law and of the business environment. Our lawyers studied at top law schools in the United States, United Kingdom, Switzerland and elsewhere. They also have experience working for leading international and domestic law firms in a number of jurisdictions. We speak your language, too. Our legal team is fluent in more than 15 languages, including all the key languages of the region.

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Our legal advice delivers tangible results – as proven by our strong track record. We are the only Czech member firm of Lex Mundi, the world's leading network of independent law firms. As one of the leading law firms in the region, we have received many national and international awards, in some cases several years in a row. Honours include the Chambers Europe Award for Excellence, The Lawyer and Czech and Slovak Law Firm of the Year. Thanks to our close cooperation with leading international law firms and strong local players, we can serve clients in multiple jurisdictions around the globe. Our strong network means that we can meet your needs, wherever you do business.

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