GRAMMERCY COUNTERS CSIF'S PROPOSAL FOR BACB CAPITAL HIKE

Grammercy Emerging Market Fund, the second-biggest shareholder in Bulgarian American Credit Bank (BACB), has put forth an alternative proposal for the bank's upcoming capital hike, according to the updated invitation for the general shareholders' meeting of the bank.

The fund, which holds a 29.96 per cent stake in BACB, or 3.78 million shares, has proposed issuing 6.73 million new shares, an increase of 53 per cent. The new shares would carry an issue price of 7.5 leva a share.

Earlier in June, Sofia-based Clever Synergies Investment Fund (CSIF), which owns 49.99 per cent of BACB, said it would seek to double the bank's equity at a price of four leva a share, well below the stock's book value of 14.4 leva each.

The decision about the capital hike needs a two-thirds majority to be approved.

Should Gramercy's proposal be accepted at the shareholders' meeting scheduled for July 5, the bank will raise the same amount as under CSIF's proposal, 50.5 million leva.