* KBC selling 16.2 pct stake, Santander up to 5.2
* Placement to meet requirement for 30 pct owned by others
* Priced at 240-270 zloty vs Friday close of 268.80
(Adds more details, banks involved)
BRUSSELS, March 18 Belgium's KBC and
the eurozone's biggest bank Santander began placing
almost 20 million shares in Polish lender Bank Zachodni WBK
worth some $1.70 billion with other investors.
KBC Bank said it was selling its remaining 16.2 percent
stake, received as part of its deal to sell Polish unit Kredyt
Bank to Santander, which merged Kredyt Bank with BZ WBK.
Santander, which holds a 75 percent stake in BZ WBK, will be
placing between 0.2 and 5.2 percent.
As part of a deal with Polish regulators to win backing for
the takeover, the Spanish lender agreed to reduce its BZ WBK
stake to boost freefloat.
BZ WBK shares fell 2.3 percent in early trade to 262.50
zlotys, valuing the lender at some 25 billion zlotys ($7.9
Reuters data shows BZ WBK trades at 1.8 times its book value
compared with the median of 1.4 times for its Polish rivals.
The offering will be priced at 240 to 270 Polish zloty.
The placement to institutional investors, running from
Monday to no later than Thursday, is aimed at satisfying the
Polish regulator's requirement that 30 percent of BZ WBK is in
the hands of other minority investors by the end of 2014.
Deutsche Bank, Citi, Morgan Stanley, BofA Merrill Lynch,
Credit Suisse, KBC Securities and Santander Investment are Joint
Global Coordinators and Joint Bookrunners.
Dom Maklerski BZ WBK is Joint Global Coordinator, Joint
Bookrunner and Offering Agent.
Goldman Sachs International and UBS Investment Bank are
acting as Joint Bookrunners, while Dom Maklerski PKO BP, ING,
Royal Bank of Canada and Societe Generale are Co-Lead Managers.
($1 = 3.1714 Polish zlotys)
(Reporting By Philip Blenkinsop; Editing by Helen