Final Decision Made – Alternative Private Equity Enters Vaba

Alternative Private Equity has made a final decision regarding the recapitalization of Varaždin Bank.

– Following the completion of the due diligence process of Vaba d.d. Bank Varaždin and the indicative offer for the Bank’s recapitalization amounting to 50 million kuna presented a month ago, Alternative Private Equity, which manages Alternative Private Equity FGS, has today made a final decision regarding the recapitalization of Vaba d.d. Bank, they report on Wednesday.

The mentioned Decision confirms the recapitalization of Vaba d.d. Bank at a price of 14 kuna per share, whereby Alternative Private Equity acquires 66.92 percent of the Bank’s equity capital, thus becoming the largest individual shareholder.

The recapitalization of Vaba d.d. Bank Varaždin will create a solid foundation for further strengthening the Bank and increased lending activity, which will directly impact the development of the economy and the sector of small and medium-sized enterprises that represent the majority of the Bank’s clients. Small banks exist and provide credit to small and medium-sized enterprises in every country, thus having their indispensable place in Croatia as well, they state from FGS. This project offers small banks a long-term sustainable model for survival, within which FGS is a natural partner in consolidation as they combine the interests of private investors in the fund, who seek to achieve a satisfactory return on invested funds, with the interests of the state, which, in addition to achieving a satisfactory return, aims to contribute to the stability of the economy and its growth, they say.

Let us recall, the Supervisory Board of Alternative Private Equity made a preliminary decision on the approval of the transaction on October 22, 2012, while following today’s final decision, in accordance with the necessary procedures and legal regulations, a General Assembly of the Bank is expected to be convened in the near future to make the necessary decisions.

After the recapitalization, which constitutes the first phase of the mentioned transaction and after securing all necessary legal and other prerequisites, Alternative Private Equity plans to implement the second phase, i.e., the integration of Vaba Bank and Centar Bank d.d., as part of the project for the consolidation of small banks in the Republic of Croatia, which will further strengthen both banks and open new spaces in the Croatian banking market, along with numerous advantages for the clients of both banks.

The public will be regularly informed about all further steps.