3-9-2014 0:37

Press Releases

MILLENIUM TO BE INTEGRATED INTO BIG BANK GDANSKI,S.A., ENHANCING VALUE CREATION POTENTIAL OF BBG GROUP
BIG Bank GDANSKI S.A. (BBG) and Banco Comercial Português, S.A. (BCP) announced today that, together with BBG’s wholly-owned subsidiary BIG BANK Spolka Akcyjna (BIG BANK), they have entered an agreement whereby BBG has purchased from BCP their economic interest in the Millenium retail banking project.
2001/01/03

BIG Bank GDANSKI S.A. (BBG) and Banco Comercial Português, S.A. (BCP) announced today that, together with BBG?s wholly-owned subsidiary BIG BANK Spolka Akcyjna (BIG BANK), they have entered an agreement whereby BBG has purchased from BCP their economic interest in the Millenium retail banking project. As a result of this transaction BBG became the sole owner of Millenium.

BBG, its subsidiary BIG BANK and BCP launched the innovative Millenium retail banking network as at 28 October 1998, pursuant to an Agreement on Co-operation (the Agreement) entered by the same parties as at 15 May 1998, such project to reach 250 branches in Southern and Central Poland before the end of 2001. Millenium was to be financed by both BBG and BCP with a 55% and a 45% participation, respectively. The Agreement also set forth that Millenium would operate within BIG BANK?s framework and that, upon completion, BCP would exchange its interests in Millenium for shares in BIG BANK, which would operate solely in retail banking.

Pursuant to the Extraordinary General Meetings of BBG and BIG BANK, held as at 1 August 2000 and 10 August 2000, respectively, the shareholders of both banks approved resolutions leading to the merger of BIG BANK into BBG.

It was then clearly presented to the shareholders of both banks - and received their support - that the merger and subsequent integration of Millenium into BBG was of paramount importance to the realization of the synergies arising from integrated operations, co-ordinated commercial activity and seamless transfer of the know-how and technology characteristic of the Millenium project, thus enhancing the value creation potential of combining BBG, BIG BANK and Millenium.

In the wake of this new situation the implementation of the Agreement would not be feasible and the parties have agreed on the transaction announced today, implying the fair settlement of all interests held by BBG and BCP in Millenium.

The acquisition by BBG from BCP of the latter?s economic interest in Millenium is seen by both banks as a fair and transparent solution, creating the conditions for BBG to realize its strategy of growth of its client and business base in Poland. Further to a valuation conducted by an independent advisor, BBG and BCP have agreed to a transaction consideration of Pln 530,800,000 for all rights held by BCP in the Millenium project at its current status, such payment to be made by BBG on 31 December 2003.


 
print   back

I Want