If all goes as planned Komercni banka, the second largest Financial institution in the Czech Republic and the last state-owned bank, will Find itself in the hands of a strategic partner by the end of March 2001. As the privatization draws near, the Czech government appears to have learned from the mistakes it made during previous bank sales.
The government is planning an ambitious timetable for privatization. According to Radovan Vavra, Komercni's CEO and chairman, an information memorandum is expected to be sent to possible partners in September so that potential investors can discuss the sale with government officials at the World Bank and IMF meetings in Prague. Non-binding oVers are expected to be required by the end of October.
After two months of due diligence, January is slated as the deadline for binding oVers, giving the government three months to meet its informal target of selling the bank by the end of March.
"It's do-able but tough and it will only work if everyone works," says Vavra. "But we at Komercni banka will work, Goldman Sachs [advisers to the sale] are highly professional and the government wants to sell the bank, so it can happen."