The bank will offer investors 7.14 million new shares at 7 euros apiece

pending the go-ahead from the Securities Market Agency (ATVP).

The

timetable will be determined in a prospectus to be released on Thursday

along with the documents for the 30 May annual general meeting.

The

recapitalisation will be key to the implementation of the bank's strategy

until 2014, which includes a possible merger with Gorenjska banka, Abanka

supervisors said in a press release.

The merger has been attempted

several times over the years, but the latest attempt was blocked in

February by Gorenjska banka, which expressed concern about Abanka's capital

adequacy.

The merger has been promoted by the major shareholders,

Zavarovalnica Triglav (25.6%) and conglomerate Sava (23.83%).

Sava is

also the biggest shareholder of Gorenjska banka (49.8%) and holds the

majority stake in the bank together with Triglav (4.3%).

The two

banks combined would have a 12.9% share of the Slovenian banking market by

assets, second only to NLB.

Abanka has lost over 40% of its value on

the Ljubljana Stock Exchange so far this year. It is currently priced at 9

euros per share but not a single share has changed hands in the last three

weeks.