The Government of Serbia has to announce the privatization of Komercijalna banka by June 30, 2019 and it has to sell it by the end of 2019. The government of Serbia and IMF Mission have come to this decision two weeks ago, Blic daily has learned.
The Ministry of Finance has published a public call financial advisor for sale of the state shares in Komercijalna banka
which is due on November 12. Thus, the sale of around 40% of Komercijalna banka capital owned by Serbia has officially begun several years after the privatization was announced. Privatization was first declared 11 years ago when EBRD increased the share capital with EUR 70 million. According to the agreement Serbia then signed with this international financial institution the state was required to sell its shares in the bank.
Serbia is the largest shareholder in Komercijalna banka retaining 41.7% of capital, EBRD owns 24.4 % of shares and IFC, the member of the World Bank Group, owns 10% of shares. The stocks of Komercijalna banka are valued around EUR 280 million on the Belgrade Stock Exchange and the state shares are worth around EUR 116 million.
The Ministry of Finance stated that after the financial advisor completes the detailed analysis of the market and the analysis of privatization models applied at competition, they should propose the best possible strategy and the model of sales with the goal to find a reliable partner. The public call stated that interested parties should have considerable experience in bank privatization and a team of experts in the field. Financial counselor will be c hose based on the price and quality offered.
In the first six month of 2018 the bank has generated profit of EUR 31 million without tax. Total savings deposits by June 30, 2018 amounted to over EUR 1.6 billion and according to the BBS data the bank's financial statements showed that it had 11% of the Serbian banking market. Komercijalna banka was founded in 1970 and today has over 200 branch offices across Serbia.Stock price jumps by 10% in an hour
The announcement about the tender for financial advisor for the sale of Komercijalna banka has on October 15 given a push to its shares on the market, which saw a 7% increase. By the end of the day a stock was worth RSD 2,098. The total of 1,773 shares were sold while the offer had been four times higher.