Megabank to increase charter fund 43%

Megabank (MEGA) shareholders will vote on whether to go ahead with a 43% charter fund increase, to UAH 500 mln, via an additional share issue at an AGM scheduled for August 21. If approved, the shares would be issued at par, with subscription running September 18-30. Andrii Parkhomenko: We think that the majority of the new shares will be purchased by the European Bank for Reconstruction and Development. In mid-June, the EBRD board approved purchasing up to a 25% stake in Megabank, according to local daily Kommersant. Currently, the bank’s shares trade just 12% above par value; hence we do not expect a substantial impact from the new share issue on the bank’s share price.