Bulgaria’s central bank said on Friday it has rejected an application by Sofia-based Industrial Holding Doverie to acquire 99.53% of the share capital of Tokuda Bank.

The refusal is based on articles of the Credit Institutions Act relating to assessment by the central bank of the reputation and experience of the people who will manage the bank following the acquisition as well as the financial stability of the applicant with a view to the specific nature of the activity of the bank.

Other grounds for the refusal cited in a statement of the Bulgarian National Bank (BNB) include an article from the Credit Institutions Act relating to assessment of the capability of the group, of which the bank will become a part, to exercise efficient supervision over the bank’s operations.

In May, Industrial Holding Doverie,  a subsidiary of  Doverie Obedinen Holding, signed a preliminary agreement for the purchase with Japan-based International Hospital Service. No financial details were announced at the time.

By acquiring Tokuda Bank, the potential buyer wanted to expand and diversify its portfolio, while the would-be seller wanted to concentrate resources into its core activity of healthcare services.