Bulgarian Development Bank gets antitrust nod to buy stake in Fibank

Bulgarian Development Bank gets antitrust nod to buy stake in Fibank

Bulgaria's Commission for Protection of Competition said on Monday that it has allowed state-owned Bulgarian Development Bank (BDB) to proceed with the planned acquisition of 18.35% interest in First Investment Bank (Fibank) through participation in its capital increase. The 18.35% interest will give the BDB no real control over Fibank's commercial activities as there will be two other shareholders with 31.35% interest each following Fibank's capital increase, the competition authority said. The two major shareholders in Fibank are businessmen Tseko Minev and Ivaylo Mutafchiev, who own 42.5% interest each before the completion of the capital increase. Last month, Fibank said it has raised 195.4 million levs ($112.8 million/99.9 million euro) in a capital increase, through which BDB is acquiring 18.35% interest in the company. The other major investor in the capital increase - Liechtenstein-registered Valea Foundation - is acquiring shares equal to a 7.87% stake in Fibank. BDB's decision caused a public outcry as it subscribed for the shares in Fibank at a price of 5 levs apiece, representing a 92% premium over the existing

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