Draft on procedure of selling 63.89% of Moldindconbank's shares presented for public consultation

Chisinau, 28 January /MOLDPRES/- The Public Property Agency (APP) will buy new shares issued by Moldindconbank at a price of 760.3 million lei in order to sell on the regulated market of the Stock Exchange, according to a draft resolution presented today by the Ministry of Finance for public consultation.

The Finance Ministry will earmark 764 million lei to APP “to purchase the shares of Moldindconbank and to cover costs related to buying the shares”.

After the purchase of the shares of Moldindconbank, the Public Property Agency will put on sale on the regulated market, through outcry auction, as a single package, the shares issued by Moldindconbank. Equal terms for tender will be offered to both the potential purchaser and other potential acquirers.

According to the document, the Public Property Agency will sign on behalf of the government a pre-contract with potential acquirer, which has the prior approval of the National Bank of Moldova for acquiring or increasing the holding in the bank's share capital of the shares issued by Moldindconbank. The document also provides for the draft sale-purchase contract. The same procedure, which corresponds to good practices in European countries, was also applied in 2018 in the case of a stock package of Moldova-Agroindbank. The form of trading through the state also represents good protection for the future investor, according to the National Bank of Moldova.

BNM blocked on 20 October 2016 a group of Moldindconbank shareholders acting jointly by prior acquisition and holding a significant interest in the bank's capital of 63.89 percent without the prior written permission of the BNM. Following the cancellation of the suspended shares, new shares were issued in accordance with the Law on the capital market. These new actions have been evaluated by an international company and have been put up for sale but have not been requested.

On 22 January 2019, BNM executive board approved the decision on the prior permission for the acquisition by the European company DOVERIE UNITED-HOLDING AD of the 63.89 percent package of Moldindconbank's shares.

The next day, the National Financial Stability Committee proposed to the government to start negotiations with the potential acquirer of the single package of 63.89 percent of Moldindconbank's shares to facilitate the transaction under the Law on management and privatisation of public property.

BNM noted that this procedure is applied, taking into account the fact that Moldindconbank is a systemic bank. At the same time, the potential investor showed interest in a good time for the bank, after the BNM on 18 January 2019 made the last extension allowed by law for another three months of the term for the alienation of these shares.

The draft is to be considered and approved by the government.