Are you sure?

MKB Bank board decides on HUF 20 bln worth capital raise through private placement

Hungary's MKB Bank said Monday its board decided to raise the bank's registered capital by HUF 1.27 billion to HUF 16.04 billion in a private placement between June 9 and June 24.

The 1,272,335 new ordinary shares, with a nominal value of HUF 1,000 apiece, will be offered for subscription at HUF 15,915.60 apiece. The proceeds from the capital increase will total HUF 20.25 billion.

The board authorized Germany's BayernLB, the bank's main shareholder, to subscribe the new shares, but all other existing shareholders enjoy preference at subscription in proportion to their existing stakes.

BayernLB agreed to subscribe and pay for 1,141,923 shares, in line with the size of its stake in MKB, on the first day of subscription. BayernLB will subscribe any shares that have not yet been purchased on the last day of the subscription period.

MKB Bank had after-tax profit of HUF 2.52 billion in 2009. Total assets stood at HUF 3,107 billion at the end of last year, including net assets of HUF 244 billion. (MTI-Econews)