OREANDA-NEWS. October 15, 2010. Yesterday at Bank Forum’s EGM, shareholders voted to increase the bank’s charter capital by 34% or UAH 1.5 bln (USD 189 mln). The shares will be placed at their par value of UAH 10 (some 60% above yesterday’s UX closing price of UAH 6.3). The subscription will last from December 31st to January 31st (the first stage ends on January 27th). The bank will buy back shares from minority shareholders voting against the charter capital increase at a price we estimate to be UAH 6.6-6.7 per share (within ten days the bank will announce the terms of the buyback).

Concorde Capital Bank Forum’s majority shareholder, Commerzbank AG, now holds a 94.5% stake. This will be the second capital infusion this year after Forum approved a twofold increase in March. Forum’s CEO stated that the major reason for the capital injection is to aggressively expand the loan portfolio in 2011 with a targeted increase of 25% next year. The management also hopes to begin reducing provisions next year. It was also confirmed that the bank has nearly completed a structural reorganization aimed at reducing operating costs going forward.