Paul Boris, Chairman of the PFR, the acquisition of Pekao SA: bison return to Poland – Republic

Congratulations with the expense this year, that is, the acquisition by the company PZU and PFR 32.8 per cent. shares of Pekao for 10.6 billion UAH. If it is true that the agreement was signed at 3 a.m.?

Yes, the contract we signed half of the fourth. We had two nights where we slept for two or three hours. The negotiations were very intense, until the very end. Investment would not have happened if not for the plan Morawieckiego and the rise of the PFR. Now PZU and PFR are under one leadership of Prime Minister Matthew Morawieckiego, who has a vast experience in the banking industry, and without him this deal would not exist.

How was the negotiation? If the risk of rupture?Good negotiations are those in which the parties, sometimes even away from the table and also had such moments. It was not just the talk, the project is not simple because of the scale of investment is large, Pekao is the second largest Bank in Poland, and absorption also are two companies. In addition, UniCredit, on Tuesday, December 13, will announce a plan for its recapitalization so that we had a term limit in these negotiations. Especially pleased that it was able to successfully complete.

Who negotiated with the Polish side?as the PFR together with the ROM created a team, participated personally in all the negotiations, took part in them also the Chairman of the ROM’s Michael Krupiński. We have shown that this syndrome could well interact, conduct due-diligence and negotiations, as before, in Milan, as in Warsaw. I am convinced that succeeded in the course of these negotiations to determine good conditions for us this transaction is also useful for UniCreditu. We were also able to provide risk loans frankowych, and we will continue to cooperate strategically because UniCredit will remain with the pack of 7 percent. in the coming years. We also identified a number of elements regarding the purchase of shares in pozsotałych Pioneerze, PTE Pekao and Xelionie to Pekao real integrated group after the transaction.

How long will it take the end of the contract?

the Deal requires the approval of the office for the Protection of Competition and Consumers and the Committee of Financial Supervision. We assume that it will be in the second quarter, so in may, maybe we will be able to settle the transaction.

risks associated with approvals, first of all, UOKiK?

it’s Not like such a risk existed. Part Pekao in Polish banking market is about 10 per cent., PZU through share Aliorze has the share is much smaller, of the order of several percent. So there’s no risk of the liqueur, the more that we do not plan to connect with Pekao Aliora.

PFR estimates, the annual rate of return of investment in Pekao has to reach at least 10 percent. As you want to do that?

For the ROM it’s an interesting investment because the insurer has a large residual capital invested is currently at 3-3. 5 per cent., and Pekao pays each year after approx. 6 percent. dividends, so from a purely financial point of view, investment in the banking sector can be usefully ROMs and its shareholders.

What will be the direction of Pekao’s strategy?

we Appreciate the same high quality of Bank management and current strategy. There will be two large groups of financial market in Poland – PKO BP, which for several years is also present in insurance – and ROM with Pekao. In the same way as in other markets, such as Germany’s Commerzbank and Deutsche Bank, and Italy, where UniCredit and Intensa. Both the Polish group listed on the stock exchange, have a wide range of owners, but they have a different profile PKO BP is strong in the retail market and Pekao stronger in the corporate market. We put great emphasis on investment in new technologies, improving it through quality services. We have corrected the approach to safety strategy and policy of the Bank was continued, the risk level was safe and the Bank to pay dividends to shareholders. The Bank complies with the terms of payment of 100%. profit, shareholders can count on a good, high dividends.

you have Monday meetings with investors and analysts. How do they take that deal?

Interest and there were many questions. Looking at the market reaction, that is, the growth of quotations Pekao more than 3 percent. and ROM more than 2 percent., it is seen that the terms of the transaction and our approach and strategy have been positively received.

Logo Pekao, looking now the same as the international logo UniCreditu will change?

We changed the visualization of the UniCredit group in Pekao, we want it to be repaired bison (disappeared from the logo of Pekao four years ago – ed.). We want to return to the traditional logos with żubrem. Rather, we do not plan to place logtypu ROM emblem Pekao. This, however, is a strategic investor in the Bank who wants to work closely with him in the field, for example, sales of insurance products.