THE Polish finance ministry will announce plans next week to sell 20 per cent of Wielkopolski Bank Kredytowy (WBK), in which AIB has a 16.3 per cent stake.
AIB and other potential investors will be given six weeks to submit tender offers, according to the deputy head of the finance ministry's banking division, Mr Miroslav Bojanczyk. But he warned the government would not accept "a low offer" for its shares.
Confirming the government's plans to reduce its stake in WBK to 5 per cent, he contended that Polish bank shares were both cheap and a good investment. "Any investor who wants to take a strategic stake will have to pay a premium over the market price," he said.
Mr Bojanczyk revealed that the ministry this week asked the European Bank for Reconstruction and Development (EBRD) to disclose details of its arrangements with AIE with regard to EBRD's 24 per cent stake in WBK. AIE has an option to acquire the full EBRD stake.
"We wanted to know about this arrangement because we do not know their intended strategy," he said.
If AIB exercises its option to acquire the EBRD shares, it will own just over 40 per cent of WBK. With its current shares and options, the Irish bank already considers itself the strategic share holder in WBK.
But the Polish ministry considers the acquisition of its stake by AIB could be "a good solution".
"As long as the price is good, it is better to have one strategic investor than two or three with large stakes," Mr Bojanczyk said.
If AIE acquired the government stake, it would have to get approval from the Polish anti monopolies commission because its total stake would have risen above 25 per cent, he said.
The Polish government's two main interests are the price it can realise from the sale and the intended strategy, including the future investment plans, of the potential purchasers.
AIE paid £13 million for its 16 per cent stake in WBK. Mr Bojanczyk refused to be drawn on the price the government was aiming for. But he maintained the bids should reflect prices being paid in other countries for bank stakes.
"Polish banks are very cheap. WBK's share price is low when its results are considered. We want to sell but we will not accept a low offer," he said.
WBK shares are trading at a price/earnings ratio of just over four while foreign banks are trading at a level of about 10 times earnings, he said.
Tender offers would be assessed by a special commission, which would make recommend actions to the finance ministry, he said. Some bidders may be short listed and invited to negotiate on terms, he added.
