PZU aims to sell Alior Bank shares to Pekao under new strategy

GDANSK (Reuters) - Poland's top insurer PZU said on Monday it plans to sell its 32% stake in Alior Bank to Pekao, in which it holds 20%, as it seeks to regroup its banking activities under a new 2025-2027 strategy.

Poland's state assets minister Jakub Jaworowski said in September that PZU needed a strategy to address its stakes in the two competing banks, which he said was complicating its valuation.

PZU and Pekao, Poland's second biggest lender, have signed a letter of intent regarding the reorganisation, though no binding decisions have been made, the state-controlled insurer said.

The signing of a sale and purchase agreement, which is expected to include a cash settlement, is planned for the first half of 2025, it said.

The move will create value for shareholders through greater transparency and simplified group governance, PZU added.

PZU has seen a positive impact from its bank holdings, both on its profit and through the cross-sale of banking and insurance products. Earnings from the banking activities added nearly 2 billion zlotys ($489 million) to its profit last year.

A 20% stake in Pekao is valued at around $1.75 billion according to Reuters calculations based on LSEG data, while 32% in Alior is worth some $936 million.

PZU also said it aimed to pay a dividend of at least 4.5 zlotys per share under the new strategy, with a 2027 net profit target of more than 6.2 billion zlotys. It also targets a return on equity exceeding 19% in the same period.

($1 = 4.0911 zlotys)

(Reporting by Rafal W. Nowak; Editing by Milla Nissi)