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New capital in USB

04/04/2011 12:31
USB Bank will proceed with a share capital increase of €12.1 million in order to boost its capital base.

According to an announcement released today, “the strategic decision for the issue is for the Bank to have strong capital indices, allowing the continuance of its development course and to comply with the requirements of the supervisory authorities. The proposed issue will boost the Bank’s capital base, with the pro-forma capital adequacy index as at December 31, 2010 reaching 13.28% from 9.97%”.

The proposed issue concerns the issue of 15,168,543 new shares of nominal value €0.57 each at the price of €0.80 per new share. The issue of 15,168,543 new shares based on the existing issued share capital of 45,505,628 shares is a ratio of 1 new share for every 3 existing issued shares. The issue price of €0.80 represents goodwill of 5.3% from the closing price of the share of USB as at March 31, 2011 and is equal to the price offered recently by BLC Bank s.a.l as a price for the Public Offer for the acquisition of up to 100% of the share capital if USB in December 2010.

Following its decision for the issue of 15,168,543 new shares at the price of €0.80 each, the Board of Directors decided to hold an EGM on May 4, 2011, when the existing shareholders will be called to disclaim their pre-emption rights so that the issue is offered exclusively to the major shareholders of the bank, BLC Bank.

The issue and allocation of the new shares to BLC Bank is subject to the EGM approval. In addition, BLC Bank will submit an application to the SEC in order to secure a license in relation to the increase of its participation in the share capital of USB as a result of the issue based on the provisions of the Takeover Bid Law 2007.

BLC Bank currently holds 42,705,697 shares that represent 93.85% of the issued share capital of the Bank. With the completion of the issue and on condition that all necessary approvals will be secured, the stake of BLC Bank in the share capital of USB will increase to 95.39% (excluding the possible disposal of up to 933,310 shares to the registered shareholders as BLC Bank pledged).

After the completion of the issue and allocation of 15,168,543 new shares, the Bank will take all necessary measures for their listing to the CSE.