First bank under CBCG measures: Aco Đukanović is missing six million euros

The first bank needs a recapitalization of six million euros in the next five years, of which two million in this year, it was stated in the prospectus of the public call for the issuance of new shares, which the bank sent to existing shareholders on March 5.

The assembly of shareholders of Prva banka made this decision on recapitalization on December 29 last year. According to unofficial information from "Vijesti", the decision on this issue was made after the measures implemented by the Central Bank in order to enable the continuation of the bank's work in accordance with the conditions of the Law on Credit Institutions.

In the last three years, the auditors have issued a qualified opinion on the bank's financial statements, pointing out that the outflow of deposits and other activities "indicate the existence of a materially significant uncertainty that may cause doubt in the bank's ability to continue operating as a going concern". At the end of last year, the attempt of the largest shareholder failed Aca Đukanović to sell the majority of shares of this bank to an investor from Serbia Davor Matsuri.

The Central Bank confirmed to "Vijesta" that measures have been taken in connection with the First Bank, but that they cannot disclose the details due to the confidentiality of the data.

"After the control of Prva Banka's operations, the Central Bank, in accordance with the law, imposed supervisory measures on the Bank, the aim of which is to promptly undertake activities to improve the security and stability of the Bank's operations, as well as to eliminate identified irregularities. We remind you that in accordance with the Law on Credit Institutions and other positive regulations, all supervisory measures imposed by the Central Bank are marked with the level of 'confidential', including the established deadlines and the method of action of the credit institution", it was stated in the reply from the CBCG signed by the Director of the Licensing Directorate, approvals, measures and assessment of compliance in the CBCG Control Sector Nikola Bašanović.

Prva banka did not directly answer the question why they are recapitalizing the bank and whether they are doing so at the request of the Central Bank.

"The assembly of shareholders of Prva banka at the session held on December 29.12.2023, 29.02.2024. by a qualified majority passed the Decision on the XIX issue of shares based on a public offer. The Decision in question was approved by the decision of the Commission for the Capital Market dated February 15.648, 127,82. year, by which the Capital Market Commission approved the prospectus for the public offering of 18 ordinary shares, individual nominal value €2.000.127,36, series 'RE-XNUMX', in the total volume of share issue of €XNUMX. According to the above, the shareholders, using their ownership rights, independently decided on the recapitalization", it was stated from Prva banka.

Prva banka now has 410 thousand shares with a nominal value of EUR 127,82, so the total nominal capital of the bank is EUR 52,4 million. According to the report on the bank's operations from the end of last year, the share capital of the bank is 55,4 million euros, the accumulated loss is 33 million, other reserves are 10,8 million euros, so the total capital is estimated at 33,3 million euros.

The bank's shares were last traded on the stock exchange at prices of 20,5 euros, and now there are no offers to buy on the stock exchange even at those prices. The market value of the bank, according to stock prices, is EUR 8,4 million. This means that shareholders participating in the recapitalization will pay 127,82 euros per share, six times more than the stock market price.

Shareholders of the bank, who were the owners of the shares on the day of the decision on December 29, have the right to purchase these shares in accordance with the percentage participation in the capital of the bank within 60 days from the publication of the issue, ie until May 4. If the shares are not bought in this way within the stipulated period, within an additional period of three months, the existing shareholders (who participated in the first round) can buy shares that were not taken over by other shareholders.

Shareholders pay the money for the purchase of shares into a special account of Prva banka and that money becomes its capital. According to the rules from the prospectus, the issue of shares will be considered successful if the existing shareholders buy 65 percent of the issued shares. If the issue is unsuccessful, the bank returns the money to the shareholders who paid it.

State EPCG may have assets of 19 million euros at risk

Whether the state company Elektroprivreda will participate in the recapitalization of Prva banka is officially decided by the Board of Directors, but according to "Vijesti" information, they will seek the Government's opinion.

EPCG is the owner of 81 thousand ordinary shares with voting rights or 19,76 percent, as well as three thousand so-called priority shares without voting rights.

Both of these groups of shares at nominal prices are worth 13 million euros.

EPCG has the right to participate in this issue of shares by purchasing 19,76 percent of the issued shares (3.092 shares) in the first round of recapitalization, which is about 400 thousand euros.

In the second round of recapitalization, EPCG could buy the remaining shares that are not bought by other shareholders.

If the issue of shares was unsuccessful, Prva banka would be in serious trouble, which in the worst case could lead to bankruptcy.

In that case, EPCG would lose the estimated capital for its shares of 13 million euros in its balance sheets.

This state-owned company also has a subordinated loan of six million euros in Prva banka, which it could not withdraw earlier due to the prohibition of the CBCG, as it would endanger the bank. In case of bankruptcy of this bank, EPCG would also lose this money, so the total damage would officially be 19 million euros.

Miro Vračar will be a new member of the bank's management

Prva banka accepted EPCG's request to re-hold the Shareholders' Assembly on March 27, at which the Supervisory Board would be re-elected.

According to "Vijesti" information, the state energy company's candidate for board member of Prva banka is Miro Vračar, financial advisor to the executive director, whose appointment has already been approved by the Central Bank of Montenegro.

Previously, the Shareholders' Assembly was held at the beginning of February, but EPCG was not informed about it, which is why the mandate of its current representative was extended. Velizar Čolović.