European investor gets permission of National Bank of Moldova to buy 63.89 per vent of commercial bank's stocks

Chisinau, 22 January /MOLDPRES/ - The executive committee of the National Bank of Moldova (BNM) today approved a decision on a preliminary permission for the procurement by DOVERIE UNITED-HOLDING AD of 63.89 per cent of the stocks of Moldindconbank.   

BNM noted that the investor showed interest on an opportune period for Moldindconbank, after on 18 January 2019, the National Bank carried out the last extension allowed by the law by another three months of the term of sale of the newly issued shares by this bank.   

The taking over by the investor of the single block of stocks will create conditions for an ordered getting out of the bank from early intervention regime, so that the work of Moldindconbank is not affected, the latter continuing to work as normal, providing all services, including those dealing with the operations with deposits, crediting and discounts.  

DOVERIE UNITED-HOLDING AD is set to come to Moldindconbank with a team of managers with a rich international experience in the banking sector. In this respect, BNM describes the intention of the potential investor as a notable opportunity to develop, for a long term, one of the systemic banks of Moldova and to enhance the competitiveness and quality of the services provided to its clients.

The potential investor is one of the most important companies from Bulgaria. It was founded in 1996 as a privatization fund with a portfolio of participants in more than 20 enterprises from diverse economic fields, which work in more countries of the region.  

On 20 October 2016, BNM blocked a group of Moldindconbank stockholders, who acted jointly through the earlier acquisition and holding of a substantial share of the bank’s registered share capital, worth 63.89 per cent, without the preliminary written permission of BNM, thus infringing the provisions of the law on financial institutions. Following the cancellation of the shares suspended, new shares were issued, in line with the law on capital market. These new actions were assessed by a renowned international company and were put to sale at exchange, but have not been earlier demanded.  

BNM Governor Octavian Armasu has recently said in an interview given for mass media that “the early intervention mechanism, used at the commercial bank Moldindconbank stock company, creates a positive precedent to improve banks. In the last two years, the bank has become more robust and more efficient. This makes us believe that the bank’s shares put for sale will become attractive for quality investors, especially as it is about a controlling stake, which provides control over the bank’s management. In particular, taking into account the flexibility of the present legal framework and, as a case may by, the good protection of the future investor – the form of trading through the state, applied also in the case of the commercial bank MOLDOVA-AGROINDBANK stock company.”   

In early last October, the international consortium of investors (European Bank for Reconstruction and Development, Invalda INVL, Horizon Capital) became the owner of the block of 41.09 per cent of the Moldova-Agroindbank shares, after it had won a tender and signed the contract on sale and purchasing with the Public Property Agency, in the name of Moldova’s government.  

The transaction with the blocks of stocks bought through the Stock Exchange of Moldova was described as “a huge step as concerns the turning more transparent of the stockholders.”

The sale of the blocks of stocks of Moldova-Agroindbank is also a commitment of Moldova’s authorities before the International Monetary Fund, World Bank and European Union.