ArmBusinessBank expecting reduction of Ukrprombank’s stake

ArmBusinessBank expecting reduction of Ukrprombank’s stake in its
authorized capital

2009-03-10 18:14:00

ArmInfo. ArmBusinessBank (ABB) is expecting a 13% reduction of
Ukrprombank’s stake in its authorized capital in the current year,
Chairman of ABB Board Ara Kirakosyan says in an interview with ArmInfo.

A. Kirakosyan said the bank plans capitalization for the current year.
The decision on the first capitalization was adopted on February 5 at
the extraordinary meeting of ABB shareholders. Thus, the authorized
capital of the bank will be increased by 3.050 billion drams by ABB
shareholder company Chrystie Management Inc. The company held a 30pct
stake in the bank as of Jan 1 2009. After the
capitalization, the stake of Chrystie Management Inc will grow to 56%
whereas the stake of Ukrprombank and the Ukrainian Insurance Company
Alpha-Garant will fell to 22%, A. Kirakosyan says. He hops Alpha-Garant
will participate in the next capitalization expected later this year.
As regards the plans for future, A. Kirakosyan does not rule out that a
20-25pct stake in the bank will be sold to
another strategic partner. ‘However, we have not studied this issue yet
and we have no intention to lose such strategic partner as
Ukrprombank’, he says.

By data of ArmBusiness Bank as of Jan 1 2009 the bank’s shareholders
were UKRPROMBANK" Ltd. with 35.0%, ALPHA-GARANT ALC with 35.0%, and
CHRYSTYE MANAGEMENT COMPANY with 30.0%. As of Jan 1 2009 the total
capital of the bank constituted 6.9 billion drams ($22.6 million), the
authorized capital totaled 5 billion drams ($16.3 million). ABB is in
the top ten of leaders in the Armenian banking system by 43.2 billion
drams assets ($140.7 million). The bank completed the year 2008 with
843.7 million drams net profit ($2.7 million), which led it to the 9th
position in the banking system.