17 july, 2018

The National Bank of Moldova (NBM) extended for three more months the deadline for selling the single package of 63.89% Moldindconbank newly issued shares. Such a decision was taken at the concluding of the first auction on selling this package within the period of July 3 through 16.

As Infotag has already reported, this package was issued by the bank instead of the equivalent volume of cancelled shares, which belonged to the MICB shareholders, whose actions were declared as concerted by the NBM. The regulator blocked their shares, established 90 days for selling them to investor, which would have an NBM permit for buying these. In parallel, the NBM introduced an external administration in the MICB, appointing NBM Deputy Chairman Aurel Cincilei as administrator to the Moldindconbank.

According to General Secretary of the National Commission for Financial Market (NCFM) Elena Puiu, the MICB Board is conducting the selling of the newly issue shares in accordance with the new Law on Banking Activity, which entered into force on January 1, 2018.

According to her, the MICB conducted a tender, within which it selected an international company for establishing the price of shares, on which these may be put for public sale in the form of a single package. During the assessment, the cost of one MICB share was established at 239.50 MDL.

According to the current legislation, the NBM can extend the term of selling the MICB shares in a package of 63.89% three more times three months each (including the today's extension) given the fact that the law implies their selling within a year. If the shares are not sold in form of a single package over this period, or the regulator decides not to extend the deadline for a new term, the issuer will have to start the so-called retail selling, which will last 6 months.

In this period, the shares are put for selling each month, when each next step implies the lowering of their cost by 10%, 25%, 20% 25% and 30%, respectively.

The NCFM explained that if after the retail selling, less than 50% shares, which form the bank authorized capital, remain unsold, at the NBM permit these can be bought in the treasury with the consequent reduction of the capital, in condition of strict observance by the bank of all the prudential norms.

The Infotag interviewee in the NCFM said that if the unsold shares exceed 50% of the authorized capital of the systemic bank, the NBM takes the decision on the basis of a specially approved law "On resolution". In such a decision, the regulator will have to clearly outline all the further actions that should be taken by the share issuer.

According to another information source, in case with MICB the things may not reach the retail selling of shares.

"Just as in the case with the Moldova Agroindbank, the state mediation in selling the bank package of shares may be applied if there will be a quality investor. The interest to buying a strategic control package of shares is more probable from the side of regional or international banks", the Infotag interviewee said.

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