Alior Bank plans $2.2 bln share issue

Polish mid-tier lender Alior Bank, a unit of insurer PZU, plans to raise up to PLN 2.2 billion through a share issue to finance the takeover of Bank BPH and strengthen its capital base. Alior, controlled via a 25.2 percent stake by Polish state-run insurer PZU, wants its shareholders to approve the issue of 220 million shares with preemptive rights for existing shareholders at a meeting on May 5. "The rights offering is one of the key elements of this transaction, which in turn is an important step in the implementation of our strategy to actively participate in the consolidation of the Polish banking sector," Alior's CEO Wojciech Sobieraj said in a statement. On April 1, Alior Bank signed a deal to buy a 87.23 percent stake in Bank BPH for PLN 1.22 billion.