THE BANK CONSOLIDATION COMPAY IS REACHING TO DSK BANK
BCC intends to initiate the privatization of DSK Bank. To make it possible, on December 14, its Management Board decided to call up the General Assembly in the begining of 2001. There the BCC shareholders will vote its shareholder capital increase by BGL17.5MN. This is the nominal value of 25% of the DSK Bank shares. Sole owner of the bank is the Council of Ministers, so it has to call up its General Assembly, which is entitled to amend its Statute and initiate proceedings for a new registration at court, according to which the bank will be a normal joint-stock company, instead of being a fully owned by the state joint stock company, as it is now. Shares in the newly established institution will be held by the Council of Ministers and BCC. Later BCC will decide how to trade its DSK Bank shares.
One option is to offer them at the Bulgarian Stock Exchange, but it was not discussed by the Management Board, said Vice Prime Minister Peter Jotev, who is also BCC's Executive Director. According to some Management Board members, however, that was the idea underneath. It was first mentioned by Prime Minister Ivan Kostov at the South Eastern Europe Economic Forum, which took place on 17 - 18 October 2000 in Sofia.
There are two ways for transferring 25% of the bank's shares to the BCC capital. First of them is the Council of Ministers to sell 25% of its DSK Bank shares to BCC as per their face value and then to participate with the amount of BGL17.5MN in the BCC equity capital increase. The other way is the shares to be used as non-cash payment for the capital increase, but, before that, according to Art.72, Item 2 of the Trade Act, the shares have to be evaluated by three experts, appointed by the court.
No matter which of the two variants will be used, it will lead to increase of the state stake in BCC. Currently the company capital amounts to BGL3.2MN, the biggest stake belonging to the Ministry of Finance. The remaining part is held by Sofia Municipality, some municipal and private companies and the bankrupt MINERALBANK and BALKANBANK. Should BCC capital is increased by BGL17.5MN, it will reach BGL20.7MN. 84.54% of them will be owned by the Council of Ministers, while the Ministry of Finance will have between 12.68% and 15.3%. Finally, after the capital increase, the private shareholders stake will drop considerably. So will also happen with the dividents they could get from BCC.