RIJEKA, June 17 (Hina) - Austria's Erste Bank bought about nine percent of shares in Rijecka Bank from small shareholders and now has a 94 percent ownership share in that bank, the president of Rijecka Bank's Board, Milan Potkonjak,
told Hina on Monday night.
RIJEKA, June 17 (Hina) - Austria's Erste Bank bought about nine
percent of shares in Rijecka Bank from small shareholders and now
has a 94 percent ownership share in that bank, the president of
Rijecka Bank's Board, Milan Potkonjak, told Hina on Monday night.
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Erste Bank offered small shareholders in the bank to purchase their
shares at a price of 12.79 euros (95 kuna) per share. This is the
same price that Erste paid the government when it purchased the
majority packet of shares of 85.02 percent.
Following an assembly of the bank to be held on July 31, its stock
capital will be decreased by half and recapitalisation achieved.
For every two shares at 100 kuna (13.60 euros) each, every
shareholder will gain an additional share of 100 kuna, i.e "lose"
half the shares they own.
On Monday, the Rijecka Bank Supervisory Board examined the bank's
business activities and estimated that they had been normalised,
with growing trust among clients.
In the first four months of this year, profit before taxation
amounted to 45.9 million kuna (EUR6.25 million). An increase has
been noticed with term deposits, between 10,000 and 400,000 euros
daily.
Following additional capitalisation, the bank expects continuing
progress in its business activities, the Supervisory Board said in
a statement.
In a phone interview following the meeting, Milan Potkonjak said
that a revised financial report for 2001 indicated a loss of 816
million kuna (EUR111 million). The loss is the repercussion of
unauthorised trading and illegal activities from 1998 to March 8,
2002. It has been entirely accounted for in the bank's balance for
2001.
The bank has partially covered the losses with revenue, with the
eventual loss for 2001 totalling 644 million kuna (EUR87.61
million) has been shown for 2001, Potkonjak said.
(EUR1 = 7.35 kuna)
(hina) sp sb