As an unpaid
service to a reader, Elliott Capital LLC of Kiev, this column publishes the
following advertisement about a small commercial bank for sale in Ukraine
Readers having
similar notices to publish regarding banks in Eastern Europe are invited to submit
them to the writer of this column to be considered for publishing.
Exchange rates for
the Ukrainian hryvnia (UAH) at the time of posting:
10.8 UAH = 1 EUR
8.1 UAH = 1 USD
___________________________________________________________________
Commercial
bank for sale in Ukraine
The
following overview has been prepared by Elliott Capital LLC, and is being
provided solely for the purpose of exploring possible interest in the proposed
Transaction. Elliott Capital LLC has not
verified the information contained herein and makes no representations or
warranties as to the accuracy or completeness thereof. This overview contains
descriptive materials and information compiled for the convenience of parties
interested in contemplating the Transaction. Elliott Capital LLC expressly
disclaims any and all liability for representations, expressed or implied,
contained herein or for omissions from or errors in this overview or any other
written or oral communication transmitted to you in the course of your
evaluation of a potential purchase. This overview does not constitute an offer
to accept any proposal, but is merely a solicitation of interest with respect
to the Transaction.
ABOUT THE BANK
General
The Bank was founded in Kiev,
Ukraine, as a public joint stock company, and was registered with the National
Bank of Ukraine in March 1992. It is a
small bank, ranked in “Group 4” for volume of assets by the National Bank of
Ukraine. It has a headquarters in Kiev
with 30 employees, and no branches. The
Bank’s activity is profitable.
Licenses
The Bank operates under
banking license #XXX, reissued by the National Bank of Ukraine in 2011, and
under a general license for foreign currency operations issued in 2011. The banking license permits all ordinary
commercial banking activities, and in addition the appendix to the general
license for foreign currency operations permits the bank to...
– conduct non-trading operations with foreign
currency;
– conduct cash operations with foreign
currency: buying, selling, changing, etc.
– conduct cash operations with foreign
currency: buying, selling, changing, etc that are carried out in foreign
exchange offices, working on the basis of signed agency agreements with banks
by resident legal entities;
– maintain customer accounts for non-residents
in UAH and foreign currencies and customer accounts for residents in foreign
currencies (the maintaining of accounts for residents in UAH being already
permitted by the banking license itself);
– open correspondent accounts in authorized
banks of Ukraine denominated in foreign currencies, and implement transactions
in these accounts;
– raise and place foreign currency in the
foreign exchange market of Ukraine;
– trade foreign currency on the foreign
exchange market of Ukraine (except for transactions with foreign currency and
checks (purchase, sale, exchange) that take place at the post office and in
foreign exchange offices of banks and agents);
– carry out foreign currency
transactions in the foreign exchange market of Ukraine which belong to
financial services in accordance with Article 4 of the Law of Ukraine "On
Financial Services and State Regulation of Financial Markets" and not
specified in paragraphs two to seventeen of the section of the Procedure of
banks and branches of foreign banks in general licenses for currency
transactions approved by the Board of the Central Bank of Ukraine.
The Bank is a member of the
Deposit Guarantee Fund for individuals.
The Bank has a license for professional activity on the stock market
(securities trading) issued by the National Securities and Stock Market Commission
in 2011, and is a member of the Ukrainian Stock Traders' Association.
The bank does not possess a
license to conduct operations with gold or other precious metals.
Shareholder structure
The Bank is registered in the
form of a public joint stock company.
The shareholders are both legal entities and individuals.
Capital
Because the normative minimum
for statutory capital for banks in Ukraine is now UAH 125 Mio, in December 2012
the Bank’s statutory capital was raised from UAH 71 Mio up to UAH 125 Mio
through a subordinated debt capitalization program. The shareholders have the
right to increase the regulatory capital by up to 100% (up to UAH 250 Mio) upon
request by a potential investor.
Financial information
Current
and historical audited financial statements and prudential ratios are available
upon request.
ABOUT THE PROPOSED TRANSACTION
The proposal
Elliott Capital LLC is
financial advisor to a Client that holds approximately 83% of the Bank’s share
capital. The Client is interested in
selling its interest in the Bank, particularly the Bank’s licenses and the
Client’s share in the Bank’s share capital, with the investor also having the
possibility to purchase an additional stake of 10-17% from remaining
shareholders.
Elliott Capital LLC, as representative
of the Client, is authorized to discuss and negotiate the sale of the bank,
with particular attention given to the following options:
A. Purchase of the Bank’s license and share
capital, without the Bank’s assets and liabilities. This is the option preferred by the Client.
B. Purchase of the Bank’s license, share
capital, assets, and liabilities. This option would require an independent
appraisal of the Bank’s credit portfolio and its other assets and liabilities.
Contact information
Investors potentially
interested in the Transaction are invited to send requests for further
information (e.g., financials) or letters of interest to the following address:
Roman
Poskonnyy
Head
of Investment Banking
Elliott
Capital LLC
2B,
Muzeinyi Lane
Kiev
01001 Ukraine
E-mail:
r.poskonnyy@elliott.ua
Tel.: +38
044-596-0808/0809
Mob.:
+38 066-728-9481
Timing
Potential investors are
requested to contact Elliott Capital LLC at the above address no later than 30
September 2013.
