FIMBank plc - New Factoring JV

On 2 January 2014, FIMBank plc announced that it agreed to acquire a 40% shareholding in PRVI Faktor as part of its strategy to develop its international factoring business network. PRVI Faktor is headquartered in Slovenia with operations in Central Eastern Europe and South East Europe (comprising Serbia, Bosnia and Herzegovina, Croatia and Macedonia) and is currently jointly owned by two Slovenian banks, namely Nova Ljubljanska banka d.d. Ljubljana (NLB) and Slovenska Izvozna Banka (SID).

FIMBank is expected to invest a total of €4 million. €2,112,280 is the consideration due to the selling shareholders and €1,187,728 represents a fresh capital injection. The agreement, which is still subject to a number of regulatory approvals and the satisfaction of certain undisclosed conditions, also stipulates that FIMBank will support the growth of PRVI Faktor through debt financing alongside the current shareholders.

Additionally, NLB and SID will issue an extended call option in favour of FIMBank in terms of which FIMBank will have the right to increase its stake in PRVI Faktor to 60%. On the other hand, FIMBank will issue a put option in favour of NLB and SID giving them the right to sell their remaining shareholding to FIMBank within 2 years following the exercise of the extended call option by FIMBank.