On 2 October 2018, an international consortium which includes the European Bank for Reconstruction and Development (EBRD), Invalda INVL and Horizon Capital and which acts via the UK-based company HEIM Partners, won an auction for the sale of stake in Moldova-Agroindbank (MAIB), Moldova’s largest commercial bank.
HEIM Partners offered 451.533 million Moldovan lei (23.031 million euros) for 41.09% of the shares of MAIB.
Francis Malige, EBRD Managing Director for Financial Institutions, welcomed the determination of Moldova’s authorities to reform the banking sector. He said: “The government showed strong political will and resolve to clean up the banking sector. It took a brave decision to support the sale process of MAIB, which – no doubt – will contribute to better banking services and stronger investments to the Moldovan economy as a whole. By doing that, the government backed the National Bank of Moldova in its massive effort to consolidate the banking system and make it more transparent.”
“This transaction is a significant indirect investment in Moldova by a Lithuanian business. We are confident the international consortium will bring Western standards of governance to Moldova’s banking sector and contribute to the development of the financial industry, thereby also increasing the value of MAIB for benefit of all stakeholders, including the investors,” Invalda INVL President Darius Šulnis said.
The international consortium that is investing in MAIB will seek to ensure the highest standards of corporate governance, new technologies and effective structures to strengthen the performance of Moldova’s leading bank. MAIB is the largest commercial bank in Moldova. At the end of 2017, the bank had assets of 1.078 billion euros and equity of 180 million euros.
The EBRD and MD Partners, which is owned by Invalda INVL, each own 37.5% of the shares of HEIM Partners, while the private equity manager Horizon Capital holds the remaining 25%.
Invalda INVL currently owns 100% of MD Partners. On 20 September 2018 the INVL Special Opportunities Fund, a subfund operated by INVL Asset Management, an asset management company owned by Invalda INVL, has acquired convertible bonds of MD Partners for 4.475 million euros, Invalda INVL – for EUR 4.72 million. On obtaining the permission of the Moldovan central bank, those bonds will be converted into shares of MD Partners, after which 48.64% of the shares of MD Partners will be owned by the INVL Special Opportunities Fund, and 51.36% - by Invalda INVL.
Invalda INVL, in keeping with article 372 of the Law on Companies of the Republic of Lithuania, applied to the company’s audit committee and received an opinion regarding the transactions for acquiring MD Partners convertible bonds. Prior to the transaction the audit committee presented the opinion that, based on the information submitted by Invalda INVL, there are no grounds to consider that the agreement which Invalda INVL plans to enter into for the acquisition of convertible bonds of MD Partners would be entered into under non-market conditions or would be unfair and unjustified with regard to shareholders of Invalda INVL who are not a party to the transaction. The audit committee’s opinion is available for review at the head office of AB Invalda INVL at Gynėjų g. 14 in Vilnius during working hours.
The person authorized to provide additional information:
Darius Sulnis
President of Invalda INVL
E-mail: darius.sulnis@invl.com