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The Individuals' Deposit Guarantee Fund sold insolvent PJSC Ukrgazprombank to UAE-based Primestar Energy FZE on August 7, according to a posting on the Fund's website.
It is reported that the transaction involves the sale of 100% of the bank's shares, including obligations to depositors and creditors.
The sale and purchase agreement provides for the withdrawal of Ukrgazprombank from the market by the investor in conformity with the requirements of the legislation. In particular, solvency and liquidity indicators of the bank are to be restored within 30 days, and the completion of the bank's capitalization to be confirmed by the inspection of the National Bank of Ukraine (NBU). The Fund has appointed Victoria Stepanets its administrator in the bank to supervise the process.
It is also reported that all depositors of Ukrgazprombank, including legal entities and individuals holding over UAH 200,000 in deposit funds will be able to recover savings within specified terms, but after the bank's activities are brought in line with laws.
In addition, the Fund noted that the deal would enable it to save funds allocated for the payment of compensation to the bank's depositors and replenish its resources by means of the proceeds from sales of the shares. Furthermore, the investor has already reimbursed the Fund the costs for introducing the provisional administration.
According to the report, the mentioned transaction has been the second deal concluded with a foreign investor within just a month, which confirms the Fund's forecast regarding the recovery of Ukraine's banking system and the country's economy as a whole.
As UNIAN reported earlier, the Individuals' Deposit Guarantee Fund introduced a provisional administration at Ukrgazprombank on April 7, based on an NBU resolution designating the bank as insolvent. On July 9, the Individuals' Deposit Guarantee Fund extended the administration at Ukrgazprombank until August 7, inclusive.
Ukrgazprombank had operated in the Ukrainian market since March 27, 1996, and belonged to a group of smaller financial institutions. One of the bank's major shareholders was Lviv-based businessman Ivan Diyak, who was former Ukrainian MP and adviser to former Ukrainian President Viktor Yushchenko, as well as former adviser to chairman of NJSC Naftogaz of Ukraine's board.
On July 22, the Antimonopoly Committee of Ukraine permitted the acquisition of a 50% stake in the insolvent bank Ukrgazprombank by Primestar Energy FZE.
Primestar Energy FZE is an independent and competitive trading company dealing in raw materials within the hydro-electricity, natural gas and power plant industries worldwide.