Pre-Contract signed to acquire shares of Moldova-Agroindbank

On 22 June the international consortium, which includes the European Bank for Reconstruction and Development (EBRD), one of the leading asset management groups in the Baltic states Invalda INVL and Ukrainian private equity manager Horizon Capital, signed a Pre-Contract with the Moldovan Agency for Public Property regarding the participation of the consortium in the auction to acquire a stake of 41.09% in the largest Moldovan bank Moldova-Agroindbank (MAIB).
The international consortium, operating through a newly established company in the United Kingdom HEIM Partners, has committed to make an offer to acquire MAIB shares.
The minimum price for the stake of 41.09% of MAIB shares is over 450 million Moldovan lei (at the current exchange rate – EUR 23 million).
The auction to sell MAIB shares should take place over the course of the next few months. There is no guarantee that the international consortium will win the auction since it will also be open to other participants.
As announced previously, the National Bank of Moldova issued the permission for the international consortium, which includes Invalda INVL, to acquire MAIB shares on 20 June.
Invalda INVL, through a 100% owned subsidiary MD Partners has a 37.5% stake in HEIM Partners, EBRD also has 37.5%, Horizon Capital – 25%.
To implement the transaction, Invalda INVL will also aim to raise funds from private investors through a newly established specialised venture capital fund by INVL Asset Management. As a result, Invalda’s INVL share in the equity of MD Partners might decrease, however, it is planned that Invalda INVL will retain at least 50% of MD Partners equity.
Moldova-Agroindbank is the largest commercial bank in Moldova. Assets of the bank at the end of 2017 amounted to EUR 1.078 billion, equity was EUR 180 million.
Invalda INVL group’s companies have more than EUR 600 million of assets under management, entrusted to them by over 190 thousand clients in Lithuania and Latvia as well as international investors.
The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 38 economies across three continents. It is owned by 66 countries, the EU and the EIB. The Bank is the largest institutional investor in Moldova and has invested over EUR 1.2 billion in over 120 projects in the country to date.
Horizon Capital is a private equity firm managing funds providing financing to businesses in Ukraine and Moldova. Its funds have attracted investments from the EBRD and other investors.

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