VAB Bank shareholders approve share issue results

VAB Bank shareholders, at an AGM on August 2, approved increasing the bank’s equity capital (charter fund and additional paid in capital) to UAH 1,129 mln via a UAH 156 mln (+16%) additional share issue conducted earlier this year, according to a press release. VAB Bank Supervisory Board Chair Izchak Kanes said shareholders would consider recapitalizing the bank at the next EGM, which was scheduled for September 9. VAB’s major shareholder, Netherlands-based private equity fund Kardan N.V., announced in January it would increase its stake to 98% by buying out local shareholder Sergey Maksimov’s 35% stake for EUR 24 mln in 2010. Mykyta Mykhaylychenko: As a result of this issuance, Kardan’s stake (through its fund TBIF Financial Services N.V.) exceeded 71%, from 63% earlier, and will probably increase further after the next equity injection. VAB Bank Eurobonds now trade at 18%-19%, well above yields of other local non-distressed banks.