In doing so, KBC will fully exit NLB and comply with the strategic plan which it agreed with the European Commission in November 2009. In this strategic plan, KBC stated that its non-strategic stake in NLB was earmarked for divestment, KBC said in a statement.
Completion of the agreement is expected in early 2013 after the approval of the Slovenian Competition Authority has been obtained.
The Slovenian government, which holds the remaining equity in the bank either directly or indirectly, decided to take over KBC’s stake in NLB to be able to control the process of finding new long-term shareholders for NLB in accordance with the decisions taken by the relevant Slovenian authorities, the statement said.
KBC’s representatives on the supervisory board of NLB, John Hollows and Riet Docx, and KBC’s representative on the managing board of NLB, Guy Snoeks, resigned from their positions at NLB, effective December 31, 2012.
KBC said that when it acquired a 34% minority interest in NLB in 2002, it officially undertook in the shareholder agreement not to increase its investment until the end of 2005. In 2006 it became clear that differences of opinion existed between NLB and the other major shareholders regarding the long-term plans for NLB and KBC’s role in its future. Consequently, KBC decided in 2006 to reassess its investment in NLB and to limit its responsibility towards NLB to that of a purely financial investor.
In October, KBC said it has earmarked for divestment as part of an updated strategic focus and financial goals Serbian-based KBC Banka, Russia's Absolut Bank, Germany's KBC Bank Deutschland and Belgium's Antwerp Diamond Bank.
On Monday, KBC announced the divestment of its Russian banking subsidiary, Absolut Bank, to a group of Russian companies representing the pension reserves of the Russian non-state pension fund Blagosostoyanie.
For three of its remaining divestment files, i.e. Antwerp Diamond Bank, KBC Banka and KBC Bank Deutschland, KBC said it is still in discussions with a number of interested parties.
“[..] The divestment process for KBC Banka (Serbia) is also well under way as negotiations with a number of bidders are ongoing. For this reason, the Commission also agreed to grant KBC an extension in order to finalise the process, provided certain behavioral commitments are also prolonged," KBC Group CEO Johan Thijsn said.
