Банкеръ Daily


A Parliamentary Committee of Inquiry Will Deal With BDB's Involvement in Fibank

BG Parliament has set up a Temporary Committee to examine Bulgarian Development Bank's participation in First Investment Bank’s capital increase.


130 MPs voted for the establishment of the commission without anyone "against" or "abstained" after the proposal had been submitted by the BSP.

Evgenia Angelova from GERB was elected chairwoman of the committee. Prof. Rumen Gechev and Alexander Sabanov will be deputy chairmen of the commission. Each parliamentary group is represented by two members. The committee of inquiry will function for a period of two months.


Earlier this week, the Commission for Protection of Competition (CPC) allowed the Bulgarian Development Bank to acquire an 18.3% stake in First Investment Bank.


Fibank undertook an increase in its capital through a capital issue in the amount of up to BGN 200,000,000, representing the issue value of 40,000,000 newly issued shares, with an issue value of BGN 5 each. BDB has received prior approval from the BNB for participation in the procedure.


BDB acquires rights, allowing the subscription of shares, constituting 18.35% of the authorized capital of Fibank after the capital increase. To complete the deal, the government increased the capital of the state bank by BGN 140 million. BDB paid BGN 5 for each share.


The decision of the antitrust authorities stated that "First Investment Bank is under the joint control of the two main shareholders Tseko Minev and Ivaylo Mutafchiev, each one of them owning 42.5% of the capital. Although the planned increase in Fibank's capital will lead to a change in the shareholder structure and accordingly the ownership share, held by them will decrease to 31.35% of the share capital, this will not affect the type of control that has currently been carried out. "



Moreover, according to the CPC, no amendments to the Statute of Fibank are envisaged, concerning the way of decision-making and the management by the company’s management bodies. Together, the two major shareholders will have the opportunity to veto decisions that are essential to the company's competitive behavior.


Nearly 7.9% of Fibank's new capital is already owned by the Valea Foundation of the Czech billionaire Karel Komarek for the amount of over BGN 55 million.


The government argued that BDB's involvement in Fibank capital increase met the conditions for joining the ERM II mechanism, known as the euro area and the European Banking Union waiting room.


So far there has been no definite information whether BDB will be represented in the management of Fibank, as announced by former Finance Minister Vladislav Goranov at the closing of the transaction.

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