Insurer Aegon Magyarország Zrt has reduced its stake in the Land Credit and Mortgage Bank Rt (FHB) from 3.14% to 0.11% with the sale of 2 million B-series preference shares in three parts during March, according to an announcement in capital market gazette Magyar Tőkepiac on Monday.
Ordinary shares account for 87.88% of FHB's registered capital of Ft 6.6 billion, and preference shares make up 12.12%. The State Privatization and Holding Rt (ÁPV) holds preference shares corresponding to 3.2% of registered capital, and institutional investors hold an amount corresponding to 8.92%. Under FHB's articles of incorporation, investors with shares corresponding to 2% or more of registered capital must announce their holdings. When FHB was partly privatized in 2003, the bank's special strategic partners were allowed to subscribe the B-series preference shares. The packet was purchased by Aegon Magyarország, Allianz Hungária Insurance Rt, CIB Bank Rt and Inter-Európa Bank Rt. The special shares confer veto powers on important issues, including amendments to the articles of incorporation and changes to registered capital.