Following the implementation of the share capital increase, Valamar would hold a stake of 20% in the company, while PBZ CO would hold a 77.73% stake.

Valamar Riviera published a document on the Zagreb Stock Exchange announcing participation in the increase of the share capital of Helios Faros.

The mentioned increase is in line with the decision of the General Assembly of Helios Faros by which the share capital would be increased by HRK 139.39m. Following the increase, the company would operate with a share capital of HRK 235.96m.

Of the share capital increase, Valamar participates with the total amount of HRK 24.39m, while PBZ CO participares with HRK 114.99m.

Following the implementation of the share capital increase, Valamar would hold a stake of 20% in the company, while PBZ CO would hold a 77.73% stake.

Valamar notes that this share capital increasing is the beginning of the realization of the five-year business plan which predicts investments of HRK 692m. The investments will primarily be directed towards the reconstruction and renovation of the hotel and tourism facilities and amenities of Helios Faros under Valamar’s operating management.

As a reminder, in October this year, Valamar Riviera announced participation in a share capital increase of Imperial Riviera with the amount of HRK 106.07m. To read more about it, click here.

The mentioned acquisition was concluded at RSD 4350 per share (EBRD) and RSD 4508 per share (IFC). To put things into a perspective, the mentioned transaction translates to a P/B 1 and a P/E of 8.2 (for RSD 4350 per share) and 8.5 (RSD 4508 per share).

Yesterday, the Republic of Serbia acquired an additional 34% stake in Komercijalna Banka from EBRD and IFC. The mentioned acquisition was concluded at RSD 4350 per share (EBRD) and RSD 4508 per share (IFC). To put things into a perspective, the mentioned transaction translates to a P/B 1 and a P/E of 8.2 (for RSD 4350) and 8.5 (RSD 4508). Following the mentioned transactions, the Republic of Serbia will own 83.2% of the bank, which will enable the privatization of the Bank under the ongoing privatization process. By acquiring the mentioned shares, the state has fulfilled its obligation (put option) as part of the current sale of the bank, which was defined in 2006.

As a reminder, the transaction follows the acquisition by the Republic of Serbia of 6.89% of ordinary shares from Swedfund and DEG which was completed in June 2019.

Such news came less than a week before announced opening of the binding bids, which will occur on 2 December 2019. However, note that there is still possibility that the privatization of the bank will be called off.

From the State’s point of view (under the assumption of the privatization going through), it is very possible that the they will record a loss on the mentioned sale, as it seems unlikely that any of the acquirers will offer a full book for the bank. To put things into a perspective, Komercijalna Banka’s shares are currently traded at a P/B of 0.76.

To read more about Komercijalna Banka click here.