MICB SELLING 63.89% SHARES AS PER LAW ON BANKING ACTIVITIES

The Republic of Moldova’s second largest Moldindconbank is selling out at the public market 63.89% of its recently issued shares in conformity with the Law on Banking Activities put into force on January 1, 2018.

The Secretary General of the National Commission for Financial Market, Elena Pui, says that yet before the appearance of the Law of June 15, by which the Parliament introduced amendments to some legal acts, the MICB administration started the procedure of selling out the 63.89% parcel of shares – in full accordance with the legislation.

“The Bank organized a tender to select an international company that subsequently carried out an assessment of the shares and determined the price at which the MICB can put the shares up for an auction”, explained Elena Pui.

Asked about a subsequent procedure in case the parcel fails to be sold, Pui explained that the issuer may submit to the National Bank (NBM) an application for prolonging the 3-month sale period, and the NBM may order to extend the sale period – maximum 3 times for periods not exceeding 3 months each.

Speaking of a possibility to lower the share price, Elena Pui said that the law permits this. So, depending on objective arguments, the price can be changed.

“Upon the expiry of the period of putting up the 63.89% parcel, the issuer estranges the newly issued shares as separate shares within not longer than 6 months. After that, during the first month it is possible to lower the share price by 10%, during the second month – by 15%, third month – by 20%, 4th – by 25%, and upon expiry of the 5th month – by 30%”, said the Commission Secretary.

Elena Pui underlined that the law permits the issuer to buy out shares to the Treasury.

“This is possible in principle, but only on condition that the buying should not lead to deterioration of the Bank’s basic indicators i.e. with the observance of prudential requirements to its own means for covering risks and the indicators of the adequacy of the Bank’s own means”, said Elena Pui.

Infotag's dossier: Presently, Moldindconbank has put up for sale the parcel of shares at a price of 239.50 lei per a share having the face value of 100 lei. This is already a second attempt to sell the parcel that will last 3 months, after which, upon the National Bank’s permission, there may be a 3rd attempt for selling the assets as one whole parcel to an investor or to a group of investors having NBM’s permission for this.