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KBC drops Hungary, Czech unit IPO plans

Belgian bank KBC on Wednesday said it formally applied to the European Commission to amend an asset relief and restructuring package that involved the sale of a minority stake in its Hungarian unit K&H Bank.

"Some measures presented in the initial plan have become less effective in achieving the intended aim," the bank said. Thus "KBC and the Belgian authorities therefore propose replacing those measures by others."

KBC specifically noted "the difficulty involved in floating K&H in the current circumstances".

The European Commission approved the plan in November 2009.

KBC said in the plan that it intended to make a public offering of a minority stake in its Czech unit CSOB to be listed on the Prague Stock Exchange in 2010.

"A similar transaction can be set up in the future for selected other Central and Eastern European subsidiaries, such as K&H in Hungary," the bank said at the time.