Sofia City Council approved a resolution to sell the 67.65% of Sofia Municipality in Municipal Bank. The minimum asking price of BGN 45.7 M (EUR 23.3 M) is approximately 0.75x Book Value, in line with recent transaction valuations of comparable European banks.
As of June 2017, Municipal bank had total assets of BGN 1.5 Bn (EUR 767 M) and reported BGN 1.3 M (EUR 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.
Eligible investors should be based in the European Economic Area. Financial institutions should be rated at least BB- per S&P (or equivalent). Investors that are not financial institutions must demonstrate at least EUR 20 M in equity as well as experience and reputation in managing traded funds and other financial assets.
