Vučić's businessman wants shares of Prva banka

A company from Serbia, whose owner is close to the ruling SNS party there, which is controlled by the Serbian president Aleksandar Vučić, is interested in acquiring ownership in Prva banka, which it controls Aco Djukanovic, the brother of the current president of the country Milo Đukanović.

This information was confirmed by "News" from a source familiar with the developments related to this transaction.

The Central Bank (CBCG) officially announced yesterday that a company from Serbia submitted to it on October 27 a request for the acquisition of a qualified participation of up to 50% (minority participation) in the capital of Prva banka.

"The decision-making process is underway at the request of a legal entity from Serbia. The request was submitted on October 27, 10. The Central Bank will decide on the received request in accordance with the procedures and deadlines provided by law. For the sake of objective information, we note that the natural person who is linked in the media with the legal entity that submitted the request, according to the documentation submitted to the Central Bank of Montenegro, has no connection with the requester," the top monetary institution announced.

The announcement by the CBCG came after the day before yesterday, Nikšić Television published information that a businessman from Republika Srpska Dalibor Matić buys First Bank.

Obtaining approval from the CBCG is the beginning of the process for concluding a sales agreement.

The "Vijesti" source explained that he is a businessman who owns several companies in Serbia, and also owns a majority stake in one of the banks there.

"This businessman got hold of an attractive location in New Belgrade where, according to the planning documents, the construction of a residential and business complex is planned, and he got to that location by purchasing claims within the framework of a bankruptcy proceeding, which includes the Deposit Insurance Agency, which performs operations on behalf of the Republic of Serbia." , explained the "Vijesti" source, adding that he is in business with money exchange offices in Serbia.

As the "Vijesti" source further states, this businessman's company is involved in business projects with the Electric Power Company of Serbia (EPS) in connection with electricity billing. The state energy company in Serbia is controlled by SNS.

According to the last report of the independent auditor BDO, which was published in May of this year and which refers to the financial operations of Prva banka, a qualified opinion was given with the assessment that there are "significant uncertainties that cause significant doubt regarding the bank's ability to continue operating". and that the continuation of operations "in the foreseeable future will depend on the support of the bank's shareholders and their plans for recapitalization".

The owner told the auditor that he was looking for a buyer

In the report, published on the website of the Montenegro Stock Exchange, the auditor stated that he was informed by the shareholders that there was "interest in purchasing the majority of the bank's shares by strategic investors from Europe and the region".

The auditor determined that several items in Prva banka's statements were incorrect and needed correction, as well as that according to these parameters the bank now has a total capital adequacy ratio of 13,39% (while the prescribed limit is 10,63%), of the total core capital 9,77% (prescribed limit 8,63%) and regular capital 9,77% (prescribed limit 4,5%).

"Potential cumulative effects of the issues presented in the parts of our report and the basis for a qualified opinion and Attention, can directly affect the reduction of capital adequacy below the prescribed minimums, as well as the deterioration of other indicators and limits prescribed by the Central Bank of Montenegro, which indicates the existence of a materially significant uncertainty that causes significant doubt regarding the bank's ability to continue operations in accordance with the principle of continuity of operations", according to the auditor.

He stated that according to the opinion of the bank's management, "some of the offers" for its sale may be realized in the short term, which would "create the necessary conditions for the survival and further development of the bank".

"Based on the available information, we were not able to assess the effects of the application of future measures by the bank's shareholders and management, as well as the effects of potential measures and activities that the Central Bank of Montenegro could undertake towards the bank in connection with the bank's potential non-compliance in relation to regulations that regulate banking operations in Montenegro", stated the auditor.

The Stock Exchange placed the bank's shares under observation to prevent abuses

Yesterday, the Committee for Quotation of the Montenegro Stock Exchange made a decision on the temporary allocation of shares of Prva banka to the observation segment.

"The shares of Prva banka are temporarily allocated to the stock exchange segment for observation until the circumstances that caused the issuer to be allocated to that segment cease, and no longer than six months from the date of the decision", states the decision published on the website of Montenegro Stock Exchange.

Placing a company in the watch segment means that its shares can still be traded on the stock exchange, but that these transactions will be under special scrutiny to prevent possible abuses.

"Given that the media published information on Wednesday that the Central Bank (CBCG) was submitted a request for the purchase of a controlling package of Prva banka's shares, i.e. the acquisition of a qualified participation, to the Central Bank (CBCG) on October 27, which circumstances are special and require the notification of investors and diversion public attention, the conditions have been met for assigning the issuer to the stock exchange segment for observation," the decision states.

One of the legal reasons for placing a company in the observation segment is "if there are unverified rumors on the market that can significantly affect the price of a financial instrument", as well as in the case that "the issuer is in the process of being taken over or the bidder has announced its intention to take over the issuer".

These conditions have been met because yesterday the Central Bank of Serbia announced that it had received a request for approval for the purchase of Prva banka shares. By observing, we want to avoid the possibility that someone fictitiously with small shops increases the value of the shares, in order to eventually influence the price increase at which the remaining shares would be taken over, if this is the will and obligation of the buyer.