By Ivan Anderzhanov
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Germany’s Commerzbank has lifted its stake in Ukraine’s Bank Forum to 89.3% from about 63% after snapping up shares from investor Leonid Yurushev.
Commerzbank agreed to buy a stake of 26.25% for an undisclosed price that was indirectly held by Yurushev.
The German bank in September 2007 agreed to buy a majority stake in Bank Forum from Yurushev for $600 million to gain a foothold in a country. It also had an option to purchase another 25 %.
Yevhen Hrebeniuk, a senior analyst at Troika Dialog Ukraine, said the deal is clearly positive for the stock and removes all uncertainties that underlined the brokerage’s “sell” rating issued on February 9.
In a research note, Hrebeniuk said: “First, Commerzbank will now be able to plan Bank Forum’s development without having to worry about Yurushev’s blocking stake. Second, the new capital should more than cover the provision charge that the bank booked in 2009 and is likely to book in 2010. Finally the new capital will allow Bank Forum to return to growth mode and expand the loan portfolio in the second half of 2010.”
