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| FHB to buy back HUF 30bn of shares from state |
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Budapest, February 19, 2010 - FHB Bank on Friday said its board decided to exercise its call option
for all HUF 30bn of special dividend preference shares from the state.
The state subscribed the shares in a capital raise in the spring of 2009. The measure was part of a
programme to stabilise Hungary's banking system at the height of the crisis and drew on IMF support.
The board analyzed the circumstances which prompted the bank to sign the contract on the capital increase, citing the spread of the financial crisis to global markets, the sharp downturn of the Hungarian economy, deteriorating conditions on credit markets and the volatility of the forint, and concluded that "the external circumstances supporting the capital increase have changed so that they do not justify the presence of the state capital". "Relative positive changes achieved by the Hungarian economy after fiscal corrections" also affected the decision.
The share issue raised FHB's registered capital by HUF 4.65bn and capital reserves by HUF 25.28bn.
The state's stake in FHB rose from 4.11pc to 43.57pc as a result of the capital increase.
FHB Bank said the shares would be invalidated and share capital lowered within 30 days of their
purchase.
The transaction will not significantly change fourth-quarter net profit, the bank said.
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Source: MTI-EcoNews; 20100219 |
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