THOR BJORGOLFSSON TO PAY BGN62MN FOR HIS STAKE IN EIBANK
EIBank initiated proceedings to raise its capital from BGN56MN to BGN69.72MN through issuing 1,372,004 shares (of BGN10 face value) totalling BGN13.72MN. The shareholders will be able to apply for subscription between February 2 and March 14. The account to which those willing to acquire shares will make their payments was opened with Corporate Bank.
In fact, EIBank's capital raise through a new issue of shares is the second stage of the scheme settled on September 8, 2005 according to which the Icelandic businessman Thor Bjorgolfsson has to acquire 34% of the bank's capital. Once the companies owned by Bjorgolfsson got permission from the Bulgarian National Bank (BNB), he was going to buy part of EIBank's current capital and later become owner of 34% of the shares by participating in the raise.
At the end of last December, BNB permitted the Novator Finance Bulgaria fund which is owned by Bjorgolfsson's Walhmar Group Limited to hold a 34% stake in the Bulgarian bank. Two weeks later, on January 12, 2006, the Bulgarian Stock Exchange announced that Novator Finance Bulgaria acquired 1,023,000 EIBank shares of BGN10 face value and paid BGN47.5 per share. Bjorgolfsson's fund thus acquired 18.3% of the bank's capital paying BGN48.6MN for the stake.
According to EIBank Supervisory Board Chairwoman Tsvetelina Borislavova, the fund of the Icelandic businessman will acquire a part of the new issue that would allow him to get control over 34% of the bank's capital. Calculations show that in order to do so, Mr. Bjorgolfsson needs to acquire about 1.35 million shares, or almost the entire new issue. For them, Novator Finance Bulgaria will have to pay some BGN13.5MN in terms of face value. That will make the fund's investment in the acquisition of slightly more than a third of EIBank's capital grow up to BGN62.1MN. Therefore, the price of the credit institution or the price of 100% of its capital goes slightly above BGN180MN.