Bank Forum charter fund increase stumbles again

Bank Forum (FORM) shareholders failed to finalize the decision to increase the bank’s charter fund by UAH 1.1 bln (or +49%), as approved at an August EGM. The increase would bring the bank’s charter fund in line with NBU requirements specified following stress-tests of Ukraine’s largest banks at the beginning of 2009. Mykyta Mykhaylychenko: The decision failed to pass as main shareholders Commerzbank AG (~63%) and Ukrainian businessman Leonid Yurushev (~26%) have still not reached an agreement on the conditions of the deal. Yurushev can block the decision as 75% of votes are required to approve the charter fund increase. Apparently, Yurushev is not willing/able to invest in Forum and, we believe, might be in negotiations with Commerzbank to sell his stake in the bank. Two more Forum EGMs are scheduled for November 18 and December 17, and we anticipate the charter fund increase might be approved by yearend.