63.89% of newly issued Moldindconbank shares are again put up for sale within an auction at the Moldovan Stock Exchange in a single package at the same total initial price - 760.1 million lei

63.89% of newly issued Moldindconbank shares are again put up for sale within an auction at the Moldovan Stock Exchange in a single package at the same total initial price - 760.1 million lei

As noted in the message of the bank, this package of shares is put up for sale starting October 18, for a period of 3 months. The voice auction for the sale of shares will be held at the Stock Exchange of Moldova from January 3 to January 18, 2019. This is the sale of the newly issued 3173751 ordinary registered class I shares of Moldindconbank, which are put up for sale as a single package at the same initial price - 239.5 lei per share. The block of shares can be acquired by one buyer or by a group of persons acting in concert who have received prior permission of the National Bank of Moldova in accordance with the law. It should be noted that the previous auction for the sale of 63.89% newly issued Moldindconbank shares was held at the Stock Exchange of Moldova during October 4 – 17, 2018, but no buyers were found. As a result, the National Bank extended for 3 months the period established for the sale of newly issued shares of Moldindconbank. As previously reported, Moldindconbank is in the early intervention mode applied since October 20, 2016, following the detection of a coordinated action by a group of individuals who acquired and owned a significant share in the bank’s authorized capital (63.89%) without the prior written permission of the NBM, violating thus, the Law on Financial Institutions. By a decision of October 20, 2016, the NBM appointed Moldindconbank interim managers, whose powers were repeatedly extended. Earlier it was reported that 63.89% of the shares owned by the group of persons whose agreed activities were determined by the NBM resolution of October 20, 2016, were arrested in a criminal case. In January 2018, in accordance with the provisions of the law, the Board of Moldindconbank approved a decision to cancel some shares issued by the bank and to issue new shares amounting to 63.89% of the bank’s authorized capital, which were put up for sale at the initial price determined by a well-known independent international company. Earlier, the President of the National Bank of Moldova, Sergiu Cioclea, noted that two large banks in the region had expressed preliminary interest in buying 63.89% of Moldindconbank's shares. In addition, one of the important institutional investors expressed desire to participate as a co-investor in the event of the creation of a consortium. Sergiu Cioclea stressed that today Moldindconbank is a modern and solid bank thanks to the measures taken by the temporary administrators in the framework of the early intervention regime. The NBM President noted that the use of the early intervention mechanism in our country was successful and creates a positive precedent for the recovery of banks. “For this reason, we hope that the bank's shares put up for sale will be of interest to strategic investors, especially since the matter concerns a controlling stake that gives control over the bank management,” said Sergiu Cioclea. //19.10.2018 - InfoMarket.

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