EANS-Adhoc: KA Finanz AG / Possible future absorption of parts of the assets and liabilities of Kommunalkredit Austria AG in accordance with ad-hoc announcement dated 11 August 2014

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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other
13.03.2015

KA Finanz AG (KF), referring to the ad-hoc announcement dated 11
August 2014 and based on information just received from
Finanzmarktbeteiligung Aktiengesellschaft des Bundes (FIMBAG),
notifies the following: In the partial sale process of KA announced
on 11 August 2014, a significant interim step has been achieved as of
today. FIMBAG, the joint shareholder of Kommunalkredit Austria AG
(KA) and KF, has signed a share purchase agreement with a buyer
consortium, consisting of the English Interritus Limited, initiated
by Dr. Patrick Bettscheider, and the Irish Trinity Investments
Limited, managed by the London-based asset manager Attestor Capital
LLP, (Consortium), providing, inter alia, for the following:

- The entire business operations of KA, including all its
subsidiaries, will be transferred to a newly incorporated company (KA
New) by way of a proportionate demerger according to §1.2.2 First
Scenario of the Austrian Demerger Act (Spaltungsgesetz). This
includes loans and securities of the existing KA in the amount of
approximately EUR 3.5 billion out of total assets according to the
Austrian Commercial Code of approximately EUR 4.3 billion.

- The part of KA remaining after this restructuring step (KA
Residual) with total assets of approximately EUR 7 billion will be
merged into KF.

- The effectiveness of the share purchase agreement and the execution
of the demerger of KA for new incorporation as well as the merger of
KA Residual into KF are subject to a number of pre-conditions and
approvals to be granted by the competent bodies of KF and of KA, i.e.
the Supervisory Board and the Annual General Meeting, as well as the
competent bank supervisory authorities, the European Commission and
other authorities.

The partial sale of KA and the sale of the shares of FIMBAG in KA New
are in compliance with the Amendment Decision of the European
Commission dated 19 July 2013 and the public tender published by
FIMBAG on 14 August 2014.

ISIN:
AT0000441209; XS0140045302; XS0144772927; XS0185015541;
XS0257275098; XS0270579856; XS0279423775; XS0286975973;
XS0354530916

Stock exchanges:
Vienna, Luxembourg

For enquiries please contact:
KA Finanz AG
Investor Relations
Dinah Reiss
1092 Wien/Vienna, Türkenstraße/Tuerkenstrasse 9
Tel./Phone: +43/1/31 6 31-678
Fax: +43/1/31 6 31-505 oder/or 99678
Mail: d.reiss@kafinanz.at
WWW: www.kafinanz.at

Issuer: KA Finanz AG
Tuerkenstrasse 9
A-1092 Vienna
Phone: +43/1/310 06 06
Fax: +43/1/310 06 06-404
Email: info@kafinanz.at
WWW: www.kafinanz.at

Sector: banks
ISIN: -
Indices:
Stock exchanges: Vienna Stock Exchange
Language: English

Further inquiry note:
KA Finanz AG
Treasury - Investor Relations
Dinah Reiss
A-1092 Wien, Türkenstraße 9
Tel.: ++43(0)1/310 06 06-678
Fax : ++43(0)1/310 06 06-505 or 99678
Mail: d.reiss@kafinanz.at

end of announcement euro adhoc
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issuer: KA Finanz AG
Türkenstraße 9
A-1092 Wien
phone: +43/1/310 06 06
FAX: +43/1/310 06 06 - 404
mail: info@kafinanz.at
WWW: www.kafinanz.at
sector: Banking
ISIN: -
indexes:
stockmarkets: stock market: Wien
language: English