OREANDA-NEWS. June 26, 2009. European Bank for Reconstruction & Development (EBRD) reports of absence of problems with a deal on entering Milli Kart capital.

Francis Delaey, head of the EBRD office in Baku, said the investment agreement on the deal was approved and signed in December.

“Today we are increasing Milli Kart capital within the deal. The process is ongoing.” Francis Delaey said.

In June Milli Kart Meeting of Shareholders will consider the issue on EBRD’s entering into Milli Kart capital and make required amendments to the charter.

Jalal Orujev, Milli Kart executive director, said general meeting has not been held, but was scheduled for June.

Founder banks should confirm the sale of a 10% stake to EBRD.

On 30 December 2008, MK and the EBRD signed the shareholder agreement on sale of a 10% stake to the Bank.

Real conclusion of the deal on equity stake sale is scheduled for the 2nd quarter 2009. EBRD will enter in ranks of MK founder shareholders in the process of MK charter capital increase from current AZN 4 million up to AZN 5 million. Simultaneously MK will keep status of a company with limited liability, although its Charter will be corrected in connection with appearance of the new shareholder.

At the November 28 general meeting the MK shareholders endorsed basic directions of the Charter amendments linked with the deal with the EBRD.

The general meeting will approve the new Charter in 2009.

Change of the Charter is the major condition set by EBRD for deal conclusion. The shareholders will be suggested changes on some options. Due to completion of work over the Charter, MK is going to finish the deal with the EBRD till the end of 2008. The EBRD was offered to acquire up to 20% of Milli Kart shares. Eventually the EBRD agreed to subscribe for 10% equity stake in MK.

In July 2008 the EBRD special mission visited Baku for relevant negotiations. Last May the MK founders assigned an authorized person to hold talks and sign agreements on sale of the stake of shares to the EBRD.

Currently MK is in the process of preparing the deal for stake sale to the EBRD.

The MK shareholders have already sanctioned the deal with EBRD. The MK founder shareholders are as follows: Azerbaycan Senaye Banki (ASB) (it owns the largest stake of 10%), AtaBank, Azerdemiryolbank, Bank Standard, Bank Respublika, Texnikabank, UniBank. The rest shareholders Azer-Turk Bank, Bank of Baku, Debut, Amrahbank, Xalqbank, Kredobank, Micro Finance Bank of Azerbaijan, Parabank, Rabitabank, Turanbank, Zaminbank shared the remaining capital in equal stakes.

The Ministry of Justice conducted state registration of Milli Kart September 11, 2006. MK was founded July 14 with charter capital of AZN 4 million.

For three years MK will rent the premises in the National Bank of Azerbaijan. Then a separate building will be constructed for the JSC that is the best way to meet the requirement for processing centres’ safety. And then MK charter capital will be increased.