Slovenia's Abanka Vipa Valued at up to 410 Mln Euro Ahead of Merger with Gorenjska Banka

The aim of the equity valuation, carried out by Deloitte Svetovanje, was to support the management and supervisory boards of the Abanka Vipa and Gorenjska Banka in determining the value of 100% of their equity and defining the conversion rate on the basis of the valuation in the intended merger of the two entities, Abanka said in a filing with the Ljubljana Stock Exchange (LJSE) last week.

"In line with the purpose of the valuation, the 100% ownership share in Abanka Vipa d.d. and 100% ownership share in Gorenjska Banka d.d. was valued from the perspective of a minority owner, which would receive equitable remuneration," the statement said.

Abanka Vipa's equity is divided into 7,200,000 ordinary shares, listed on the LJSE. On June 30, 2009 the bank had 7,190,787 shares in circulation with a book value of 48.27 euro per share, and also held 9,213 treasury shares.

The calculated valuation of one share in Abanka Vipa d.d. on June 30, 2009 is within a range from 51.5 and 57 euro with a mid-value of 54.2 euro, said the statement released on Thursday.

"At its meeting on 22 October 2009, the Supervisory Board of Abanka Vipa d.d. gave it consent to continuing procedures required for the merger of Abanka Vipa d.d. and Gorenjska banka d.d. The continuation of procedures includes further discussions and an expert study by the Supervisory Board's Audit Commission of the facts set out in the Preliminary Report followed by the presentation of results and proposed further decisions to the Supervisory Board."

"[...] the largest shareholders in Abanka d.d. and Gorenjska banka d.d., Kranj, Zavarovalnica Triglav d.d., Sava d.d., Zvon Ena Holding d.d. and Merkur d.d. have signed a letter of intent expressing their awareness of the intent on the part of the banks' management boards to initiate procedures aimed at implementing the commercial concept of a capital tie-up between Abanka Vipa d.d. and Gorenjska banka d.d., Kranj, to form a single bank," Abanka Vipa said in a statement to the LJSE dated July 31.

Zavarovalnica Triglav owns 25.6% of Abanka Vipa, while holding company Sava and Zvon Ena Holding control stakes of 23.83% and 2.42% each, according to data form the lender's website (www.abanka.si).

Gorenjska Banka's share capital at the end of last year comprised 331,416 ordinary shares, according to the lender's 2008 annual report. The bank's total core capital, determined in accordance with directions of the Bank for International Settlements, was 223,196,000 euro.

Sava owned 45.9% of Gorenjska Banka at the end of 2008 while hardware retailer Merkur had a 14.1% interest.

Abanka Vipa shares closed down 0.2% at 56 euro on the LJSE on Friday.

($=0.665 euro)