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FHB shareholders to authorize board to increase registered capital

Shareholders of FHB mortgage bank are to vote at the April 21 AGM on a proposal to authorize the board of directors to increase the bank's registered capital, the bank said on the Budapest Stock Exchange website.

The proposal is not directly related to FHB's reducing its registered capital by repurchasing and withdrawing the shares issued in connection with the government's capital raise carried out in 2009, FHB communications manager Béla Kappeter told MTI.

Kappeter added that the authorization will allow the board to issue shares if market conditions are favorable. The spokesman would not provide information regarding whether the repurchase transaction has been completed.

The government carried out a capital raise of HUF 4.615 billion at nominal value and HUF 30 billion at market value in FHB in 2009, which shareholders approved at the AGM in April last year. The moved was aimed at strengthening the bank's position on the Hungarian market amid the crisis.

As a result, FHB's capital increased by HUF 4.615 billion to HUF 11.215 billion, and the difference between nominal value and the issue price - around HUF 25.385 billion - was placed into capital reserves. The state-owned stake rose from 4.11% to 43.57%.

FHB shares are traded in category “A” of the Budapest Stock Exchange. The shares opened at HUF 1,512 on Monday, unchanged from Friday's close. The share price moved between HUF 501 and HUF 1,550 over the past 52 weeks. (MTI – Econews)