FHB offers state chance to subscribe new shares
The board of directors of FHB Mortgage Bank decided yesterday on the conditional increase of the companyʼs share capital by issuing new shares and exclusively offering state assets manager MNV the right to participate in the private increase, the bank said, Hungarian news agency MTI reported.
The boardʼs decision came after December 30 when MNV, acting on behalf of the state, said it would turn to the court for being unable to partake, along with other small shareholders, in a capital raise that was to be carried out – and actually did occur – on that same day. Prior to the capital raise, the state held 7.32% of FHB shares.
The December 30 capital increase was decided at a December 28 extraordinary general meeting (EGM), where FHBʼs board said that when choosing the subscribers, it acted in line with an April 2014 EGM resolution which excluded preemption rights in capital raises through a board decision.
The January 7 statement said the board was acting within the framework of an authorization granted to it by a resolution of the December 28 EGM and to the tune of the shares remaining from the authorized volume following the December 30 capital raise.
The board took into consideration that MNB had stated its intent to participate in the capital increase carried out at the end of December and that it wished to keep its previous ownership share, the FHB statement said.
As the management of FHB does not have knowledge of such intent by other investors, MNV will be the only participant in the new capital increase which can be carried out using the same conditions and issue price as those applied on December 30, 2015.
MNV is required to make a preliminary statement of commitment to subscribe new shares for the resolution of the board of directors to come into force by February 1.
It would cost the state a little less than HUF 2.2 billion to keep its stake by participating in the capital raise, state news agency MTI calculated.
Hungaryʼs Takarékbank and 30 savings cooperatives have acquired just less than 30% of the votes in FHB through subscribing new shares at 717% of nominal value in a private placement. FHBʼs registered capital rose from HUF 6.6 bln to HUF 10.849 bln through the capital raise with HUF 26.217 bln going into capital reserves.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.