July 10 (SeeNews) - Bulgaria's Commission for Protection of Competition said on Friday that state-owned Bulgarian Development Bank (BDB) is seeking its approval regarding the acquisition of a stake in an unnamed company.
The regulator launched a probe of the planned acquisition on Friday, it said on its website without providing further details.
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Earlier this month, Bulgaria's First Investment Bank's (Fibank) [BUL:5F4] said it has raised 195.4 million levs ($112.8 million/99.9 million euro) in a capital increase, through which state-owned Bulgarian Development Bank (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.
This decision by the Bulgarian Development Bank caused a public outcry as the state-owned company 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 even lower - at 2.58 levs on the BSE on Thursday.
(1 euro = 1.95583 levs)
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