Resolution to transfer of VBAG´s banking business to Investkredit by means of de-merger
Fundamental decision reached regarding redemption of first tranche of participation capital
Vienna (15 April 2011) – The core shareholders of Österreichische Volksbanken-Aktiengesellschaft (VBAG) have made two fundamental decisions that will impact the bank's future: First, the transfer of VBAG´s banking business to Investkredit by way of de-merger was resolved and second, the decision to redeem euro 300 million of the state participation capital was taken.
VBAG's Chief Executive Officer Gerald Wenzel explains: ”By transferring VBAG´s banking business to Investkredit, our activities will be concentrated where we already perform all our lending activities. This will allow us to combine VBAG and Investkredit not just organisationally but also formally, and implement the redemption of state participation capital with top efficiency.",." Both fundamental decisions are subject to final approval at the General Assembly on 19 May.
VBAG and Investkredit today filed the draft of the de-merger agreement with the commercial register. The date of entry is expected to be in the second half of 2011. The name of the unified bank will be “Österreichische Volksbanken-AG”.
Furthermore, the core shareholders today resolved to redeem the first tranche of participation capital. "Our primary shareholders, the 62 Volksbanks, have made the fundamental decision to redeem participation capital held by the Republic of Austria in an amout of euro 300 million this year.”
Chairman of the Supervisory Board Hans Hofinger stresses that the Volksbank association recognises the high value of the powerful and efficient central institution. The capital-strengthening measure, therefore, can be seen as full support for VBAG's new strategy. “VBAG has a specific and attractive vision of the future that will strengthen the entire VBAG group and the Volksbank association. The measures that have been initiated and implemented are the foundation of a sustainably healthy VBAG that is even stronger in its core business", says Hofinger.