Р•BRD made agreement on acquiring majority stocks in Azerdemiryolbank
Director of the business group of the European Bank for Reconstruction and Development (EBRD) on financial institutions Kurt Geiger signed on 23 November in Baku the agreement with the shareholders of Azerdemiryolbank on acquisition of 25% and 1share of the AzerbaijanвЂ™s bank. The deal in the amount to $2,5 million has been authorized by the EBRD Board of Directors on 15 November.
Geiger stated at the signing ceremony that entering of EBRD capital into the capital of Azerdemiryolbank will enable the AzerbaijanвЂ™s bank to develop its operations also on the account of better management and control from the part of stockholders.
"Р•BRD, except for payment of shares, implements also a technical assistance program to the bankвЂќ, Geiger said.
Thanks to the deal Azerdemiryolbank will increase its authorized capital for 14 billion AZM from the current 22 billion AZM. From the new emission 9 billion AZM will be acquired by EBRD, the rest 5 billion AZM вЂ" the acting bankвЂ™s shareholders (about 900 physical and legal entities). After entering EBRD the bankвЂ™s consolidated capital will be at the level of 60 billion AZM against the current 32 billion AZM.
Along with payment of the sharesвЂ™ nominal cost, EBRD will also pay $375,000 premium linked with re-evaluation of the AzerdemiryolbankвЂ™s main assets. As the result the deal amount will be $2,375 million.