July 27 (SeeNews) - Bulgaria's Commission for Protection of Competition said on Monday that it has allowed state-owned Bulgarian Development Bank (BDB) to proceed with the planned acquisition of 18.35% interest in First Investment Bank (Fibank) [BUL:5F4] through participation in its capital increase.
The 18.35% interest will give the BDB no real control over Fibank's commercial activities as there will be two other shareholders with 31.35% interest each following Fibank's capital increase, the competition authority said.
You can subscribe to our M&A newsletter here
The two major shareholders in Fibank are businessmen Tseko Minev and Ivaylo Mutafchiev, who own 42.5% interest each before the completion of the capital increase.
Last month, Fibank said it has raised 195.4 million levs ($112.8 million/99.9 million euro) in a capital increase, through which BDB is acquiring 18.35% interest in the company. The other major investor in the capital increase - Liechtenstein-registered Valea Foundation - is acquiring shares equal to a 7.87% stake in Fibank.
BDB's decision caused a public outcry as it subscribed for the shares in Fibank at a price of 5 levs apiece, representing a 92% premium over the existing shares' closing price of 2.6 levs on the Bulgarian Stock Exchange at the time of the auction of the subscription rights.
Fibank shares closed at 2.34 levs on the BSE on Friday.
(1 euro = 1.95583 levs)
First Investment Bank AD is among the biggest banks in SEE. You can download our SEE Top 100 ranking
here or subscribe to our free Top 100 newsletter
here