Azerbaijan National Bank Sanctions Joining Shareholding of Country’s Leading Private Bank by Foreign Investor

Business Materials 28 February 2008 13:44 (UTC +04:00)

Azerbaijan, Baku, 28 February / Trend corr I. Khalilova/ The National Bank of Azerbaijan (NBA) sanctioned joining the shareholding of AzerigazBank, one of the country's leading private banks, by a foreign investor, AzerigazBank's Chairman of the Board Azer Movsumov said. According to the decision of the bank's shareholders, the foreign investor will receive 10% of stock. Movsumov will not to disclose the identity of the investor until the deal has been agreed within two weeks.

According to Movsumov, the deal will be concluded on a net price plus premium and the shares will be purchased through a new emission for registration of which AzerigazBank has already applied to the State Committee for Securities attached to the President of Azerbaijan. As a result of the deal, the authorized capital of the AzerigazBank will increase from the current AZN 12mln to AZN 15mln.

"The operating shareholders of the bank will also participate in the placement of the new emission," Movsumov said.

AzerigazBank has some 80 shareholders.

So far, the only foreign shareholder of the bank has been the International Financial Corporation (IFC), which owns 17.5% (735,000 shares) in the bank.

For the time being, AzerigazBank's joint capital exceeds AZN 20mln and its assets comprise some AZN 170mln.

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