MKB Bank shareholders vote to reduce share capital

Deals

Wikimedia Commons/Globetrotter19

Shareholders of MKB Bank decided Friday to reduce the lenderʼs share capital from HUF 225 bln to HUF 100 bln through the withdrawal of shares, resolutions published yesterday show, according to Hungarian news agency MTI.

The ownership structure of the bank will remain unchanged. 

MKB Bank said the capital reduction was "strictly of a technical nature" and would not affect the overall value of its net assets or its capital adequacy ratio.

“MKB’s capital position remains stable and in compliance with regulations,” the lender said, adding that the capital reduction was approved earlier by the National Bank of Hungary (MNB).

The shareholders also mandated the board to tap up to HUF 50 bln in subordinated capital.

The MNB recently closed the sale of MKB Bank to a consortium of two private equity funds, Blue Robin Investments and METIS Private Capital Fund, as well as Hungaryʼs Pannonia Pension Fund, for HUF 37 bln. The equity funds each acquired 45% stakes in the lender, while the pension fund took 10% of the bankʼs shares.

Last Wednesday, MKB Bankʼs employee stock ownership plan (ESOP) acquired 15% of the lenderʼs shares from Blue Robin Investments.

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