Moldovan public property agency buys 41per cent of MAIB shares by MDL 450 million, to be put to auction

Chisinau, 19 July /MOLDPRES/ – On 18 July, the Public Property Agency (APP)  bought on the Moldova Stock Exchange two two packages of shares of Moldova Agroindbank (MAIB) worth MDL 450 million, which it will auction later. The state bought 41.09 per cent of MAIB's shares at MDL 1,054 and MDL 1,056 each, according to data from the Moldovan Stock Exchange (BVM).

The BVM estimates transaction value at about $27 million. Totally, there were traded 426,365 new shares issued by the bank after securities held by a group of shareholders, which were canceled because they acted concerted, failed to correspond with set deadlines. The respective shareholders acquired a substantial share in the bank's share capital without prior written permission of the National Bank of Moldova (BNM).

Subsequently, APP will put on sale on regulated market, throughout auction, as a unique package, the newly issued shares of systemic bank MAIB. There will be offered equal conditions for bidding to both potential purchaser, signatory of pre-contract and other potential acquirers.

On 22 June, APP on behalf of Government of Moldova signed an agreement with the International Consortium of Investors (EBRD, Invalda INVL, Horizon Capital) to sell 41.09 per cent of the new shares issued by MAIB.

Minister of Economy and Infrastructure, Chiril Gaburici, appreciated the agreement signed as "an important one". "Our intention is to complete the process of transparency and consolidation of banking sector. With large shareholders, quality shareholders, Moldovan banks need to resume fully their financial intermediation function. That means they have to offer loans for economic growth and modernisation," said the minister.

The government allowed the Public Property Agency to hold 41.09 percent of MAIB's stake in the June 20 meeting, which could be bought in the future by a consortium of investors consisting of the European Bank for Reconstruction and Development (EBRD) ) and two investment funds - AB Invalda INVL (Lithuania) and Horizon Capital (USA).

The Executive Board of BNM approved on 19 June acquisition by international consortium of investors of the 41.09 per cent stake in share capital of MAIB.

The BNM obliged in 2016 two groups of shareholders of MAIB which had acted concerted and acquired a substantial share in the bank's share capital of 41.09 per cent, without   prior written permission of BNM, to alienate within 3 months of the purchased shares. As these shares were not alienated within set deadlines, they were canceled and new ones issued, resulting in a stake of 41.09 per cent of shares, and were put more times on sale.

The sale of the share package of Moldova Agroindbank is also a commitment of authorities of Moldova towards IMF.

(Reporter V. Bercu, editor M. Jantovan)