Half of NLB New Share Issue Available to Public (adds)

Date: 05/07/2008
Category: Latest news

Ljubljana, 07 May (STA) - The existing shareholders of Slovenia's largest bank paid up just over half of the new shares issued by NLB in the first round of the EUR 300m capital increase. The remaining 426,508 shares will be offered to the public as of Friday at EUR 334 apiece, the bank said on Wednesday.

Between 17 and 30 April, the existing shareholders subscribed to and paid up 471,696 shares or 52.52% of the total of 898,204 fresh shares issued. "The result of the first round was expected," David Benedek, head of the financial markets and treasury division at NLB, told reporters in Ljubljana. Out of the 575 existing shareholders with a preemptive right, 136 subscribed to new shares (45 legal entities and 91 individuals), paying a total of EUR 157.55m. Belgian banking group KBC, which owns a 34% stake in NLB, and the European Bank for Reconstruction and Development, which holds some 5%, said they would not participate in the share capital increase. KBC even decided to sell its stake. The state, which owns 35.4%, fully used its preemptive right. It allocated EUR 34.58m in budgetary funds for it, while insurer Zavarovalnica Triglav contributed EUR 55.34m and the state-owned DSU management and consultancy enterprise EUR 16.32m. The other major subscribers were the state-run Restitution Fund (SOD) and Pension Fund Management (KAD), investment funds NFD 1 and Triglav Steber 1, Bank Austria Creditanstalt and some companies, including electricity distributer Elektro Slovenija, conglomerate Istrabenz and national telco Telekom Slovenije, Benedek said. The remaining shares will be offered to the public. Until 29 May at 1 PM, every investor can subscribe up to 250 shares in the total value of EUR 83,500. "In the case of oversubscription, we will follow the principle of guaranteed shares," Benedek said. No shares will be secured if the number of subscribers exceeds 383,857. When between 193,867 and 383,856 investors subscribe, one share will be guaranteed to each of them and two if their number ranges between 96,934 and 193,866. If fewer than 96,933 investors subscribe, each will get at least three shares. The remaining shares will be distributed in proportion to the sum paid up. The price, EUR 334 per share, is 2.48-times the book value as at 31 March. After the completed capital increase the price will be equivalent to 2.15-times book value. In a possible third round, the shares will be offered to institutional investors between 10 and 16 June. Benedek said that the capital increase would only succeed only when the whole share issue is sold.