Liechtenstein-registered Novito Opportunities submitted a bid of BGN 46 M (EUR 23 M), slightly above the minimum of BGN 45.65 M set by the Seller, Sofia Municipality, for the purchase of 67.65% in Municipal Bank.
Novito Opportunities is a newly registered subsidiary of CAIAC Fund Management AG, a privately-owned investment fund manager, providing services to private investors, financial institutions, asset managers, insurance companies and banks. The company structures and manages mutual and hedge funds, separate client focused portfolios and also invests on behalf of clients in the public equity and fixed income markets.
Municipal Bank is the 15th largest bank in Bulgaria. As of June 2017, Municipal bank had total assets of BGN 1.5 M (€ 0.8 M) and reported BGN 1.3 M (€ 0.7 M) net income for H1 2017. Its total share of the corporate deposits market is 1.69% and of the household deposits market is 1.30%. Similarly, its total market share of corporate and household loans is 0.78% and 0.39% respectively. It holds a 42% share in municipal financing volumes, making it an attractive niche provider.
Bulgaria’s Commission for Protection of Competition stated that the transaction is not expected to affect competition in the banking segment and granted its approval.
