State divests from Priorbank, agrees to repurchase shares
Financial News
Prioribank, the Belarusian banking institution, has announced its intention to alter its ownership structure significantly. Through an extraordinary general meeting of its shareholders on the 28th of May, the decision was made to purchase the state's shares in the bank, amounting to approximately 162.7 million Belarusian rubles, or around $53.7 million, according to current exchange rates.
The buyback will involve the procurement of nearly 7.8 million ordinary shares, equating to 6.31% of the bank's charter capital, at a price of 20.96 rubles per share. Notably, this price surpasses the bank's book value.
The valuation for the shares was determined based on an independent appraisal report from the RUP "Institute of Real Estate and Appraisal," dated 20th May.
In addition, the bank will purchase 2,220 preferred shares from the state for 33,400 rubles. This equates to a price of 15.07 rubles per share.
According to the shareholders' decision, the settlement of the deal is expected to be completed within ten working days following the signing of the sales contract. This transaction will enable Prioribank to consolidate a portion of its own shares and optimize its ownership structure.
Prioribank offers a diverse range of consumer and corporate banking products, including but not limited to:
- Consumer loans
- Auto loans
- Business loans
- Mortgages
- Deposits
- Loans
- Credit cards
- Debit cards
- New car leasing services
- Used car leasing services
- Business car leasing services
While the specifics regarding the terms, reasons, and potential impact of the share buyback from the state are yet to be disclosed, such transactions typically serve to return value to shareholders, optimize financial metrics, and potentially boost stock prices. For a comprehensive understanding of the circumstances surrounding this announcement, official announcements or press releases from Prioribank or relevant regulatory bodies will be necessary.
Prioribank's decision to buy back the state's shares signifies a significant shift in its ownership structure, involving investing approximately $53.7 million in purchasing nearly 8 million ordinary shares and 2,220 preferred shares. This move, aimed at consolidating a portion of its own shares, could potentially boost the bank's business by returning value to shareholders, optimizing financial metrics, and increasing the bank's finance value, as observed in similar transactions.
