Declared but unpaid dividends and employee benefits for prior financial years will be paid to the Serbian State as well as other minority shareholders, before closing the transaction with NLB.

Komercijalna Banka published an announcement on the Belgrade Stock Exchange stating that that the bank will pay out dividends approved in the previous years, as well as dividend from the last year’s profit.

As a reminder, in late February of this year, NLB Group entered into a share purchase agreement with the Republic of Serbia for the acquisition of an 83.23% ordinary shareholding in Komercijalna Banka. NLB acquired the 83.23% shareholding for the amount of EUR 387m, which will be payable in cash on completion. Such a price puts the transaction multiple at P/B 0.77 and P/E 6, while it implies a valuation of EUR 465m for the 100% stake in Komercijalna Banka.

According to the share purchase agreement, declared but unpaid dividends and employee benefits for prior financial years will be paid before closing to the Serbian State as well as other minority shareholders.

The shareholders will receive RSD 12.27bn in total of which 83.23% belong to the Serbian State. The owners of ordinary shares will receive RSD 723.4 per share (RSD 12.17bn in total), while the owners of preferred shares will receive RSD 290.2 per share (RSD 108.4m in total). 

To read more about the acquisition of  Komercijalna Banka click here.