Moldovan commercial bank's block of stocks to be put for sale against 764 million lei
14:45 | 30.01.2019 Category: Economic
Chisinau, 30 January /MOLDPRES/ - The government, at a today’s meeting, approved a draft pre-contract on the sale and purchasing of 3, 173, 751 shares newly issued by Moldindconbank, bought by the Public Property Agency (APP) with the potential purchaser, which has the preliminary approval by the National Bank of Moldova (BNM) for buying them.
Under the decision, the shares newly issued by Moldindconbank will be purchased by the Public Property Agency, in the name of the government, at a value of 760 million lei, which comply with the price for the putting these shares for sale at the last tender on the regulated market. Subsequently, the shares will be sold on the regulated market of the Stock Exchange, through public sale, as single block of stocks. Equal conditions of participation in the tender will be provided both to the potential buyer, signatory of the Pre-contract, and to other potential purchasers, which have preliminary approval of the National Bank of Moldova.
On 23 January 2019, the National Financial Stability Committee recommended the need of the state’s involvement in the sale of the shares newly issued by the systemic importance bank, Moldindconbank. At the same time, proposals were made to the government on starting negotiations with the potential buyers, in order to conclude a pre-contract. The state’s intervention through the instruments accurately established within the legal framework would allow the long-lasting settlement of the problem, turning more transparent of the bank’s shareholders and would boost even more the reformation of the banking system, being correlated to the commitments assumed by Moldova before the development partners, the Economics and Infrastructure Ministry said.
The draft elaborated by the Economics and Infrastructure Ministry reads that Moldindconbank is a systemic bank, the second largest one on the local market, with a weight of about 23.2 per cent of private people’s deposits in the banking sector and with a number of 604,000 depositors private persons. At the same time, Moldindconbank is positioned as leader of the banking sector in terms of the number of cards in circulation on local market, with a quota of 37.8 per cent. Also, Moldindconbank exercises a great influence on the national economy as to the financing of most economic sectors, as well as through its significant (second place) role in terms of the volume of ordinary and treasury payments.
On 20 October 2016, BNM blocked a group of Moldindconbank shareholders, who were acting jointly through an earlier acquisition and holding a substantial quota in the bank’s registered share capital – 63.89 per cent, without the preliminary written permission by BNM, thus infringing the provisions on the law on financial institutions. Following the cancellation of the suspended shares, new shares were issued, in line with the law on the capital market. These new shares were not evaluated by a famous international company and were put to sale at the exchange, but they were not demanded.
On 22 January 2019, the BNM executive committee approved a decision on preliminary permission for the purchasing by the Bulgarian company DOVERIE UNITED-HOLDING AD of the block of shares of 63.89 per cent of Moldindconbank’s shares, in order to facilitate the transaction, according to the law on the management and de-nationalization of the public property.
Presently, representatives of the Bulgarian company DOVERIE UNITED-HOLDING AD are on a visit to Chisinau. At a meeting with potential investors, Prime Minister Pavel Filip said that “the coming of a new investor to the financial and banking market of Moldova is a proof that the government’s actions of improving the financial and banking market have effect and the banking sector becomes more and more attractive for potential investors.” The PM assured the potential investor of support for the carrying out of this investment project.
For their part, the Bulgarian company’s representatives said that the latest developments from the Moldovan banking system had prompted them to come with investments to Moldova.
