Strategic investors buy Ukraine's Prominvestbank

11:51, 05 November 2008
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Strategic investors have acquired 68 percent of shares

Strategic investors have acquired 68 percent of shares in Ukraine`s troubled Prominvestbank, the central bank said on Wednesday, Reuters reported.

It gave no further details.

The central bank placed Prominvestbank in receivership in early October after the bank proved unable to stop a run on deposits despite refinancing.

The central bank and analysts say Prominvestbank, Ukraine`s sixth largest, is not a victim of the global financial crisis, but rather of speculation of a murky takeover deal.

"The receiver, in accordance with the regulations of the central bank board and current legislation ... will within five days form new bodies for Prominvestbank, including a supervisory council and board," the central bank said in a statement.

Ukrainian newspapers reported that the new owners would be brothers Andriy and Serhiy Klyuyev, both members of parliament from the opposition Regions Party, led by former Prime Minister Viktor Yanukovich.

Neither the central bank nor Prominvestbank would confirm or deny the reports.

Andriy Klyuyev served as a deputy prime minister when Yanukovich was prime minister from 2006 to 2007.

Several banks had earlier expressed interest in Prominvestbank, including Russia`s Sberbank and Alfa-Group and a consortium including Mykola Lagun, the co-owner of Ukrainian bank Delta.

Both Prime Minsiter Yulia Tymoshenko and the main economic adviser of her chief rival, President Viktor Yushchenko, had said the government could become the bank`s principal owner.

Prominvestbank was set up in 1992 on the basis of the Soviet-era Promstroibank and has consistently been among the country`s top 10 banks.

Reuters via FXStreet

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