MKB Bank approves HUF 80.2 billion capital increase

Deals

The board of directors at Hungary’s loss-making MKB Bank has approved a HUF 80.2 billion ($359 million) capital increase through the issuance of new shares in a private placement, MKB said on Monday.

The decision would increase MKB’s registered capital to HUF 225.5 billion, MKB said in a filing with the Budapest Stock Exchange. Germany-based owner BayernLB had reportedly already paid HUF 79.1 billion for the shares on Friday, and the reminder will be paid by February 7 if minority shareholders do not exercise their pre-emption rights.

Before the capital increase, BayernLB held a 98.6% stake in MKB, one of the biggest banks in Hungary.

MKB Bank posted a loss of HUF 32 billion in the first half of 2013, according to figures published on its website.

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