BOS shareholders play down rumors of bank infighting
By : Leo Broomfield
The two main shareholders of Bank Ochrony Srodowiska (BOS) the National Fund for Environmental Protection and Water Economy (NFOSiGW) and Skandinavska Enskilda Banken (SEB) of Sweden played down reports last week that they were in a dispute and reaffirmed their long-term commitments to the bank.
"There has been no breakdown in the common understanding between us and NFOSiGW," Gunner Lindberg, head of SEB's Polish unit and member of BOS' supervisory board, told the Business Journal. "SEB wants to retain its long-term development plan for BOS and has already decided to up the bank's capital as of Sept. 18," he said.
Not everyone is convinced, though.
BOS announced last week that NFOSiGW had withdrawn from a July agreement with SEB that established new conditions for the supervision of BOS, a share flotation, and limits on the capital engagement of the two partners in the bank.
The fund has 44.4% of votes at BOS, against SEB's 45.9%. SEB has taken a minimally larger share of BOS's shares after recently buying up smaller shareholders' stakes, but insiders say the fund is wary of SEB dominating the bank.
"And this is compounded by the Swede's failures, as they see it, to push the bank's development strategy over the past year," said an analyst who wished to remain anonymous. By revoking the agreement, the fund may hope to negotiate improved conditions of cooperation with SEB.
By contrast, the Swedes appear worried that the fund, a state-owned concern, may be hampered in its investment plans for BOS by the burgeoning hole in the state budget.
The fund, which called an extraordinary shareholders meeting for Sept. 14, declined to say whether it would put the agreement or lack of one on the agenda. Last week BOS said it would postpone the deadline for subscription of 4.44 million new shares until after the meeting. The bank is set to raise about zl. 230 million ($54.8 million) from the two share issues. Its own funds amount to zl. 601.5 million ($143.2 million).
The first chunk of the upcoming share issue, 2.7 million shares, has been set at zl. 47.50 per share, which would be directed at eight key institutional investors, including NFOSiGW, Ciech and PKN Orlen.
The second offering of 1.69 million shares will be issued at zl. 62.5 per share, with the first part earmarked for SEB, Forsakringsaktiebolaget Skandinaviska Enskilda Captive, Repono Holding AB and Repono Service AB.
Meanwhile, the bank's financial state is worsening with a net profit of zl. 18.8 million ($4.5 million) in the first half of the year zl. 3.4 million ($801,000) less than in the same period of 2000. The capitalization is the key to the bank's longer-term stability and new development strategy, bank officials said. The bank has been toying with different development plans for some time.
