Factor Banka Seeks to Increase Share Capital by Up to EUR 25M

Ljubljana, 24 April - Shareholders of Factor banka endorsed a capital injection of EUR 24.97m on Wednesday. The small Slovenian bank will issue up to 693,576 fresh shares at EUR 36 apiece in two stages, the first of which will start on Thursday with the exiting shareholders given a pre-emption right on a pro rata basis.

The shares that shareholders do not subscribe for in the first round until 16 May, will be available to exiting shareholders regardless of their interests between 20 and 31 May, according to a press release posted on the web site of the Ljubljana Stock Exchange.

In the second round, remaining new shares will also be available to well-instructed investors that have received an offer from the bank or fewer than 150 individuals or legal entities in an individual EU member states that do not hold the status of well-instructed investor.

The subscription for the shares in the second round is under condition of subscription for at minimum 3,000 newly issued shares or payment of at least EUR 108,000 in emission amount.

The subscribed for new shares need to be paid in between 15 and 30 June. The issue will succeed if 20% of the newly issued shares are paid in.

Factor banka made an estimated net loss of EUR 21.15m last year after reporting a net profit of EUR 1.26m in 2011. Like most other Slovenian banks, Factor banka is under the heavy burden of impairments and provisions. These rose to EUR 51.3m in 2012 from 15.6m the year before.

© STA, 2013