The fight for VeloBank will take place between the richest Pole, Michał Sołowow, and American investment funds – Business Insider found out. Polish banking groups are not interested in purchasing.
The sale process of VeloBank, which was created as a result of the restructuring of Getin Bank owned by Leszek Czarnecki, will soon enter a new phase. The main shareholder is currently the Bank Guarantee Fund, which holds 51 percent. shares and he will decide who will take over the bank. 49 percent the shares are held by the Commercial Bank Protection System.
Americans and the richest Pole
According to Business Insider, non-binding offers to purchase the bank were submitted by two American private equity funds, Cerberus and JC Flowers, and MS Galleon, owned by Michał Sołowow.
— Now interested investors will be able to start the due diligence process, i.e. examining the bank’s financial situation and identifying potential economic and legal risks. After that, potential buyers will be able to submit binding purchase offers and start negotiations with BFG regarding the price for VeloBank shares – says Insider. BFG does not comment on the VeloBank sale process.
Bankruptcy of Getin Bank
On September 30, 2022, the Bank Guarantee Fund (BFG) announced the initiation of restructuring proceedings against Getin Noble Bank.
The Fund explains this by providing three conditions that oblige to take such action. The bank was threatened with bankruptcy, and there were no indications that possible supervisory actions or the bank itself would remove the threat of bankruptcy in due time. Moreover, the initiation of compulsory restructuring of Getin Noble Bank was – in the Fund’s opinion – necessary in the public interest, understood as the stability of the financial sector and limiting the involvement of public funds.
Then, the institution, now under the control of the Bank Guarantee Fund, changed its name to VeloBank and started building a new strategy.
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