Italian financial group UniCredit SpA (BIT:UCG) said it would cut its stake in Polish unit Bank Pekao SA (PINK:BKPKF) to around 50.1% through the sale of 23.9m ordinary shares, or some 9.1%, to institutional investors.
UniCredit’s board cleared the disposal, the bank said, adding that the final terms will be settled through an accelerated bookbuilding process to start immediately.
With the move, the Italian group will improve capital allocation, allowing it to use the released capital to back organic growth in central and eastern Europe, UniCredit said. Pekao continues to be core to UniCredit’s franchise and strategy.
UBS Limited, UniCredit CA-IB Poland and Citigroup Inc (NYSE:C) will run the sale.
UniCredit, which agreed to a one-year lock-up period for its remaining stake in the Polish unit, said it does not expect to shed further Pekao shares after this sale.