-East Capital Explorer to pay EUR12m for lifting stake in Macedonian bank to 10.6%.
NORDIC BUSINESS REPORT-October 18, 2010--East Capital Explorer to pay EUR12m for lifting stake in Macedonian bank to 10.6%(C)2010 M2 COMMUNICATIONS http://www.m2.com
18 October 2010 - Swedish investment company East Capital Explorer AB (STO: ECEX) said today that it will raise to 10.6% from 1.4% its stake in Macedonian Komercijalna Banka AD Skopje (MSE: KMB), paying EUR12m.
East Capital, which will hold its 10.6% stake directly and indirectly, will subscribe for newly-issued shares in the bank.
Prior to the transaction the Swedish company indirectly holds 1.4% in Komercijalna Banka through its 50% holding in East Capital Bering Balkan Fund.
East Capital Explorer invests at a valuation corresponding to a price-to-book ratio of 1.0 and a price-to-earnings ratio of 6.5.
The transaction is subject to approval by the shareholders of the bank at an extraordinary general meeting (EGM) and regulatory approvals by the Macedonian Central Bank and Securities and Exchange Commission. It is expected to be completed in the fourth quarter of 2010.
Komercijalna Banka has about a third of the country's market for corporate loans and retail deposits, and a fourth of Macedonia's banking assets.
The Macedonian banking sector is poised to grow further as the market penetration is still low, East Capital Explorer said.
(EUR1 = USD1.4)
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|Publication:||Nordic Business Report|
|Date:||Oct 18, 2010|
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