February 27, 2020 / 12:11 PM / a month ago

UPDATE 1-Pekao may still pay dividend if gets involved in M&A

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WARSAW, Feb 27 (Reuters) - Bank Pekao said on Thursday it might still pay out a dividend this year even if it were to take over another bank.

State-controlled Pekao is viewed as the main contender to buy Commerzbank’s Polish lender mBank .

Pekao declined to comment on any potential mBank deal, but Chief Financial Officer Tomasz Kubiak told reporters that Pekao was willing to take care of dividend-hungry investors even if it were to become involved in a takeover.

“When it comes to making any decisions regarding acquisition plans, we will take into account the interests of dividend-driven shareholders,” he said.

mBank has a market value of $3.57 billion (3.28 billion euros), which makes Commerzbank’s 69.3% stake worth well over 2 billion euros. But the price tag could change because Poland’s financial regulator will require Commerzbank to retain some foreign currency mortgages.

Some analysts have estimated that in such circumstances the mBank stake is worth at least 12 billion zlotys ($3.03 billion), a sum that is significant even for Pekao, Poland’s second largest lender, fuelling speculation about dividend payouts. ($1 = 3.9595 zlotys) (1 euro = $1.0868) (1 euro = 4.3032 zlotys) (1 euro = $1.0868) (Reporting by Marcin Goclowski, Editing by Joanna Plucinska and Jane Merriman)

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