March 9 (SeeNews) - The Bulgarian National Bank said it has issued preliminary approvals to local lenders Investbank and Bulgarian American Credit Bank (BACB) regarding their bids to purchase Victoria Bank.
The strategy of each of the two bidders envisages absorbing Victoria Bank within six months after the acquisition is complete, BNB said in a statement on Thursday.
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In November, bankrupt Corporate Commercial Bank (Corpbank), the parent of Victoria Bank, said that BACB and Investbank have submitted binding offers for the purchase of 100% of Victoria Bank.
The previous procedure for the bank’s sale failed after Bulgaria's central bank said in March 2017 it refused to grant preliminary approval to a request of Sofia-based D Commerce Bank to acquire 100% of Victoria.
The strategy for the acquisition and business development of Victoria proposed by D Commerce Bank pose considerable risks, the central bank said at the time.
Victoria Bank recorded a net loss of 5.6 million levs ($3.4 million/2.9 million euro) in 2016, compared to a loss of 9.3 million levs a year earlier. Its total assets stood at 128.5 million levs at end-2016.
(1 euro = 1.95583 levs)