Market Redistribution Is Coming In The Banking Sector Of Belarus – Belarusian News

We are talking about a potential multi-million euro deal.

“Priorbank” intends to decide on the buyout of the state block of its shares by the end of May. We are talking about a potential deal worth several million euros for a stake of 6.31% of the authorized capital, writes Myfin.by.

The background is as follows: in April 2019, the State Property Committee (SPC) valued its 6.31% stake in Priorbank at €17 million. But between April 2019 and April 2025, the euro has depreciated by 22.47% adjusted for inflation in the eurozone.

This means that formally, having indexed the value of the stake to inflation, the SCI can now ask for €20.82 million for its shares. However, over the past 6 years, new factors have emerged that affect the value of the state stake.

First, any asset valuation is valid for no more than 6 months.

Second, in 2019 Priorbank was a “daughter” of a European banking group rated by global credit agencies. And now it is a bank – in a sub-sanctioned country, owned by a business so far little known in Belarus.

– This is enough to make the assessment of 6 years ago not make the slightest sense. Even without looking at the balance sheet and profit and loss statement,” Belarusian appraisers commented for Myfin.by.

The intention of Priorbank shareholders to increase the nominal value of shares almost threefold, to more than 2 rubles, has not yet taken effect and is unlikely to have a decisive impact on the market valuation. But in the dialog between the seller and the buyer will have to weigh such a factor as country risks, which have increased in recent years.

It was previously reported that Priorbank will hold an extraordinary general meeting of shareholders on May 28. One of the issues on the agenda is the acquisition of state-owned shares of the company’s own issue.

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