Ad-hoc releases
For enquiries concerning ad-hoc releases of Österreichische Volksbanken-AG please contact our company spokesman.
Walter Gröblinger
Company spokesman
Tel : +43(0)50 4004-3864
Fax: +43(0)50 4004-8-3864
E-Mail: walter.groeblinger@volksbank.com
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Österreichische Volksbanken-Aktiengesellschaft: Strengthening of business model through sale of Europolis, merger with Investkredit Bank AG
Österreichische Volksbanken-Aktiengesellschaft (VBAG) and CA Immo AG have agreed on the sale of 100% of shares in the VBAG subsidiary Europolis AG to CA Immo. The Management Board and Supervisory Board of ÖVAG approved the sale in their meetings today. CA Immo AG will pay € 272 million for all shares in Europolis AG. Among other things, the sale is subject to the suspensive conditions of approval by the responsible authorities and the implementation of internal restructuring measures agreed within the Group.
To further streamline the Group’s structure, the Management Board and Supervisory Board of VBAG today resolved to combine the banking operations of VBAG and those of Investkredit Bank AG. Details of the combination will be analysed and drawn up in the coming weeks. Legal implementation will occur in the first half of 2011.
The implementation of these strategic options will serve to further strengthen the business model of VBAG.
Stock exchange listed issues of participation capital issued by Österreichische Volksbanken-Aktiengesellschaft:
ISIN:
AT0000755665 Österreichische Volksbanken-AG Partizipationsscheine
XS0359924643 EUR 500,000,000 Perpetual Non Cumulative Participation Capital Certificates (issued on a fiduciary basis by Banque de Luxembourg)
The five biggest listed issues of Österreichische Volksbanken-Aktiengesellschaft in terms of issue volume:
ISIN:
XS0451759012
XS0417722393
XS0412533399
XS0271095357
AT000B053442
The issues of Österreichische Volksbanken-Aktiengesellschaft are admitted on the following stock exchanges:
Regulated unofficial market of Wiener Börse AG
Official trading of Wiener Börse AG
EUWAX segment of Baden-Württembergische Wertpapierbörse
Regulated market of Baden-Württembergische Wertpapierbörse
Regulated market of the Prague Stock Exchange
Regulated market of the Luxembourg Stock Exchange
Open Market of Berlin Stock Exchange
Open Market of Stuttgart Stock Exchange
Open Market of Frankfurt Stock Exchange
Österreichische Volksbanken-Aktiengesellschaft – Repositioning in 2010
During the Group´s repositioning in 2010 VBAG continues with the implementation of further measures. A formal process to evaluate all strategic options including strategic partnerships was established. Lazard & Co GmbH was mandated to accompany VBAG in this evaluation process.
Unless otherwise provided in the pending agreement to be given by the Austrian Financial Market Authority (FMA) a majority stake in Volksbank Linz Mühlviertel reg. Gen. mbH, will be sold as well.
This sale is expected to generate sales proceeds in total of some EUR 210 million.
Our subsidiary Investkredit Bank AG likewise does not expect to post any profit for 2009.
As a result, the dividends and coupons for the 2009 business year which are due for payment in 2010 for all profit-related securities of both institutions (equities, participation capital, hybrid capital, supplementary capital) will almost certainly not be paid out.
Q3 2009 result: Operating income of euro 307 million, consolidated net income falls to euro -607 million due to risk provisions
However, risk provisions and corrections in the valuation of participations drove down consolidated net income to euro - 607 million before tax as of 30 September 2009.
Despite the negative result in the third quarter, ÖVAG on a Group basis has a core capital ratio of 8.5 %, which exceed the statutory minimum and an equity ratio of 11 %.
For the fourth quarter, further effects are expected from the valuation of participations and the increase in risk provisions, but to a lesser extent than in the third quarter.
Due to the continuing difficult economic environment, a distribution in 2011 for the 2010 fiscal year on profit-related securities is unlikely from today’s viewpoint.
Publication of the final 2009 results is planned for April 2010.
Date: 6 November 2009
Address: Österreichische Volksbanken-AG, Kolingasse 19, 1090 Vienna, Austria
The five biggest listed issues of Österreichische Volksbanken-Aktiengesellschaft in terms of issue volume:
XS0451759012
XS0417722393
XS0412533399
XS0271095357
AT000B053442
The issues of Österreichische Volksbanken-Aktiengesellschaft are admitted on the following stock exchanges:
- Regulated unofficial market of Wiener Börse AG
- Official trading of Wiener Börse AG
- EUWAX segment of Baden-Württembergische Wertpapierbörse
- Regulated market of Baden-Württembergische Wertpapierbörse
- Regulated market of the Prague Stock Exchange
- EURONEXT of the Amsterdam Stock Exchange
- Regulated market of the Luxembourg Stock Exchange
Volksbank AG and Dexia surrender all shares – Dexia Kommunalkredit Bank (CEE subsidiary) goes to Dexia
After a week of intensive negotiations, a decision was made today regarding the future of Kommunalkredit Austria AG. Volksbank AG will surrender all of its shares (50.78%) in Kommunalkredit. These will be taken over by the Republic of Austria.
“This solution ensures that Kommunalkredit Austria will be sustainably stabilised and will also have sufficient liquidity and capital strength during the further course of the financial crisis, in order to continue successfully financing Austrian municipalities and other institutions governed by public law”, commented Franz Pinkl, Chief Executive of Volksbank AG, on the result of the negotiations. “With this step, the Republic of Austria is following the approach of other European states with public financiers".
The negotiations between the Ministry of Finance, Kommunalkredit and their owners, Dexia Crédit Local, Volksbank AG and the Austrian Association of Municipalities [Gemeindebund] have provided the following results, in detail:
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The shares held by Dexia and VBAG in Kommunalkredit are to be transferred to the federal government for a total consideration of EUR 2. With this, the federal government will hold 99.78 percent of Kommunalkredit in the future. Until further notice, the Austrian Association of Municipalities will remain a shareholder, with 0.22 percent of the shares.
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Dexia and VBAG will be obligated to strengthen the capital of Kommunalkredit and underwrite participation capital, as an owners’ contribution. For VBAG, this means a share of EUR 173 million. A share of EUR 200 million in participation capital is attributable to Dexia. The participation capital is to be furnished with a dividend of 8 percent and is to be granted for a term of at least 5 years. Through these measures and additional equity capital from the federal government, the core capital ratio of Kommunalkredit will be increased to 8 to 9 percent. VBAG and Dexia will issue guarantees for possible future losses in Kommunalkredit. Confidentiality has been agreed regarding the amount of the respective guarantees.
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The Kommunalkredit shares of 49.16 percent in Dexia Kommunalkredit Bank (DKB) will be transferred to Dexia for EUR 1. No further liability obligations will arise from the surrender of DKB for KA.
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The Republic of Austria will ensure that Kommunalkredit has sufficient liquidity by guaranteeing future issues of Kommunalkredit.
Core capital is increased to at least 9%
“With the upcoming measures to strengthen capital we are sustainably strengthening our position in national and international competition, in a market environment that is known to be difficult. Surrendering the shares in Kommunalkredit Austria AG relieves VBAG’s financial situation. It means we can further expand our position as a reliable financing partner for private and corporate customers”, says the Supervisory Board of Volksbank AG.
