Bulgarian Doverie United Holding Bought the Second Largest Bank in Moldova for BGN 76 Million

Business | February 21, 2019, Thursday // 12:23| Views: | Comments: 0
Bulgaria: Bulgarian Doverie United Holding Bought the Second Largest Bank in Moldova for BGN 76 Million

The subsidiary of the Bulgarian "Doverie United Holding" - "Doverie - Invest" formally concluded a preliminary contract for the acquisition of 63.8% of the capital of the Moldovan bank Moldindconbank. This is clear from a notification to the Financial Supervision Commission (FSC) and the Bulgarian Stock Exchange.

The deal was concluded on February 13, and the vendor is the Moldovan State Property Agency. The National Bank of Moldova has granted permission for the acquisition. According to the announcement, Doverie - Invest will acquire 3.173 million shares of the financial institution and the transaction will total BGN 76.614 million. "The cost of acquiring the shares will be added to this price," the document says. Today, the shares of Doverie United Holding rose by 1.54% on the BSE and by January 23, when the deal was announced, by 74%. For the same period, the Sofix index accounted for only 1.46%. Information about the interest of the Bulgarian company to the second largest bank in Moldova came out at the end of last month. It then became clear that Doverie United Holding was authorized by the authorities in the country for the acquisition.

After the deal, the bank will become the third largest financial institution in Moldova, sold to a foreign investor. This is part of the enforced strategy to "clear" the banking system in the country, demanded by the International Monetary Fund (IMF) and other creditors. These actions came after a $ 1 billion scandal that shook the Moldovan economy. The deal with Doverie United Holding will help the authorities in Chisinau to meet the conditions in the IMF program, which includes ensuring greater transparency regarding the ownership of banks. This is not the first interest of Doverie United Holding in the Moldovan market. In 2017 the company took steps to acquire more than 50% of the capital of another bank in the country - B.C. Victoriabank. Later, the company gave up the deal. Last October an agreement was also concluded as part of the largest financial institution in the country. A consortium led by the EBRD bought 41% of Agroindbank's shares.

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